Bijay Kumar ORDER
Bijay Kumar, Member (T)
1. After being recalled the Final order No. 51781/2018 dated 11/5/2018, by our Misc. Order No. 50816/2018, we heard the matter today.
2. The brief facts of the case are that the respondent assessee M/s. S.B. Industries, are engaged in the manufacture of power bank/portable mobile charger out of imported components. For this purpose they have registered themselves with the Central Excise Department for availing facility of import of goods at concessional rate of duty under the Notification No. 12/2012/Customs dated 13/03/2012, as amended. They have also got themselves registered under the Customs (Import of goods at the Concessional rate of duty for Manufacture of Excisable goods) Rules 1996 for import of inputs and parts of the mobile battery charger falling under the CFSTH 8504 40 30 of the Central Excise Tariff Act, 1986.
3. It is argued by Ld. Advocate, on behalf of the respondent that the product manufactured by them is 'power bank' which is used to charge mobile phones as 'mobile battery charger', without use of separate charger. The 'power bank' is primarily used to charge the battery of mobile phone and is different from accumulator has held in the impugned order. It was further submitted that the 'power bank' primarily acts as the charger for mobile handsets and hence the respondent is entitled for Exemption Notification No. 12/2012-Cus, which exempts the part or component as classifiable in any chapter for manufacture of battery charger of a mobile handsets. Ld. Advocate also submitted that the Ld. Commissioner (Appeal), in his order has rightly held that benefit of aforesaid Notification is available to the power bank as mobile battery charger. It was further submitted that the Commissioner (Appeal) has rightly ignored the Ministry's clarification issued to the respondent vide letter F. No. 354/29/2017-TRU dated 26/4/2017, wherein it was clarified that the benefit of impugned Notification is not available to the appellant on the ground that portable device for charging mobile battery (also known as a power bank) is classified under Tariff item 8504 40 30 and treated as accessory to the mobile phone and not entitled to the benefit of duty exemption under Notification No. 12/2012-Cus : MANU/CUST/0068/2012 dated 17/03/2012. It has been stated in the said letter that the power bank merit classification as an accumulator, under heading No. 8507 of the Customs Tariff Act and not eligible for Exemption Notification (supra). It was also stated in the letter that the benefit of Exemption is also not available as on date either under heading 8507, Sl. No. 431 and Sl. No. 430A of Notification as above. It was further clarified in the letter that the benefit of Exemption contained in the above Notification is only for the charger for use in the manufacture of mobile handsets under Sl. No. 430A, and for the inputs, part or sub part of the charger of mobile handsets under Sl. No. 431A of Notification (supra) subject to actual user condition.
4. Ld. Advocate also submitted that the judgments relied upon by the Revenue in case of Delta Power Solution Pvt. Ltd. [MANU/AR/0028/2011 : 2012 (280) ELT 567 (AAR)], is not applicable for their product as the classification was with respect to 'accumulator' which consisted battery cells 2 each is imported and put in the bonded warehouse and on receiving the or........