Diffused Silicon Wafer Considered as ‘Semi Conductor Devices’ Attracts 5% Rate of IGST: CESTAT [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the diffused silicon wafer considered as semiconductor device which attracts a 5% rate of Integrated Goods and Service Tax (IGST). 

CETC Renewable Energy Technology (India) Private Limited, the appellant assessee was a private limited company importing various capital goods from overseas, to be used in the manufacture of Solar Cells, from Diffused / Undiffused Silicon Wafers / Blue Wafers and the Diffused / Undiffused Silicon Wafer / Blue Wafer was claimed to be the basic input / raw material required for the manufacture of Solar Cells. 

The assessee appealed against the order passed by the Commissioner of Customs for confirming the classification of imported goods for demand safeguard duty and also for the imposition of a penalty for confiscation of imported goods by the assessee. 

C. Manickam, the counsel for the assessee contended that the imported product was not classifiable under Chapter heading 8541 4011 of the Customs Tariff Code as Solar Cells. 

Further submitted that the imported Diffused Silicon Wafer / Blue Wafer had no screen printing with fingers and busbars and hence, not capable of performing the essential function of a Solar Cell. 

It was also explained that Rule 2(a) of the General Rules of Interpretation deals with the determination of classification of an incomplete or semi-finished article that was capable of performing essential functions. 

R. Rajaraman, the counsel for the department contended that there was no specific entry for an incomplete or an intermediate product and in a conventional sense, the imported Diffused Silicon Wafer was not a part of the Solar Cell, for classification, it had to be dealt with as a product other than a finished Solar Cell. 

Also stated that the imported Diffused Silicon Wafer had to be classified under chapter heading 8541 4011 under the specific entry of Solar Cells of Customs Tariff Code which attracts 5% of Goods and Service Tax (GST). 

The Bench observed that the goods classifiable under Chapter Heading 8541 of the Customs Tariff Code attracted 5% Integrated Goods and Service Tax (IGST) which applied to the assessee. 

The two-member bench comprising P. Dinesha (Judicial) and Vasa Seshagiri Rao( Technical) held that the imported goods of the assessee were classifiable under the category of solar cells and attracts 5% of GST.

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