The Supreme Court on April 10, 2026 sought responses from several mobile phone manufacturers, including local units of Samsung, LG, Vivo, and Oppo, on an appeal by the customs department seeking a higher ad valorem integrated goods and services tax (IGST) of 28% on imported lithium-ion batteries.
A bench comprising Justices JB Pardiwala and KV Viswanathan agreed to hear the appeal, which challenges a 2025 ruling of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that held a lower IGST rate of 12% applicable on imports of lithium-ion batteries used in mobile phones and tablets.
Additional Solicitor General appeared for the department, while counsel Kishore Kunal accepted notice on behalf of some companies.
The department argued that the tribunal failed to appreciate that the batteries, having an independent commercial identity and separate tariff classification, cannot be treated as “parts of mobile phones” for classification purposes. It alleged that manufacturers misclassified the goods to avail the lower IGST rate.
Source from: https://telecom.economictimes.indiatimes.com/news/devices/supreme-court-of-india-reviews-customs-appeal-for-28-igst-on-phone-batteries/130182944
