Applicant is engaged in trading of electrical and electronic goods including power banks. They submitted that power banks while charging compatible devices perform mainly two activities (i) accumulation of electrical energy and (ii) converting energy from DC-to-DC to provide regulated output based on load demand. They filed an application with AAR on the matter of classification of ‘Power Banks’ under chapter heading 8504 40 90 ‘Static Converter – Others’. AAR ruled against applicant stating that power banks are accumulators and not static convertors because
Aggrieved by ruling applicant filed appeal with appellate authority of advance ruling arguing that the functions and components of power banks are similar to that of UPSS hence those merit classifications under Chapter Head 8504 similar to that of UPSS (static convertor).
The AAAR upheld order passed by AAR and stated that:
Source: [2019] 108 taxmann.com 259 (AAAR-KARNATAKA)
Xiaomi Technology India (P.) Ltd., In re [2019] 102 taxmann.com 28 (AAR – Karnataka)