2025(06)LCX0396(AAR)

TACO Prestolite Electric Private Limited

decided on 20-06-2025

Customs Authority for Advance Rulings 

New Custom House, Ballard Estate, Mumbai - 400 001

E-MAIL: cus-advrulings.mum@gov.in

N.B. :

1. A copy of this order made under sub-section (2) of Section 28-1 of the Customs Act, 1962 . is granted to the concerned free of charge.

2. Any appeal against this Advance Ruling order shall lie before the jurisdictional High Court of concerned jurisdiction, within 60 days from the date of the communication of such ruling or order.

3. The advance ruling pronounced by the Authority under Section 28 - I shall remain valid for three years or till there is a change in law or facts on the basis of which the advance ruling has been pronounced, whichever is earlier.

4. Where the Authority finds that the advance ruling was obtained by the applicant by fraud or misrepresentation of facts, the same shall be declared void ab initio.

Advance Ruling

TACO Prestolite Electric Private Limited (having IEC No. 0515070041) and hereinafter referred to as 'the applicant', in short) filed three applications (CAAR-1) for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The said applications were received in the secretariat of the CAAR, Mumbai on 24.02.2025 along with enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the 'Act' also). The applicant is seeking advance ruling on the issue of classification of Insulated Gate Bipolar Transistor (IGBT) under CTI 85412900 (Other) of the First Schedule of the Customs Tariff Act, 1975 or otherwise.

2. The Applicant vide their application dated 18.11.2024 has submitted as follows:

2.1 TACO Prestolite Electric Private Limited (hereinafter referred to as "the Applicant"), is a company incorporated in India under the provision of the Companies Act, 2013 and it is part of the Tata AutoComp Systems Limited (Tata AutoComp") group companies engaged in the business of providing automotive products and services to the Indian and global automotive OEM having in-house capabilities in automotive interior and exterior plastics, composites, sheet metal stampings, engineering and supply chain.

2.2 As part of the business, Tata AutoComp has joint ventures ("JV") in partnership with leaders of the global auto component industry for the purpose of manufacturing, marketing and export thereof of automotive components and systems which inter alia include engine cooling solutions, automotive batteries, motors, electronic solutions for automobiles, etc.

2.3 In relation to the above activities, the Applicant purchases goods domestically as well as from overseas for use in manufacturing finished goods or directly sales them in after sale market. One of the products imported by the Applicant is "Insulated Gate Bipolar Transistor" (hereinafter also referred to as "IGBT"). The Applicant is continuously intending to import the IGBT from its various foreign supplier into India.

Product Details

Technical details:

2.4 Insulated Gate Bipolar Transistor or the IGBT is a three-terminal semiconductor switching device that is used for fast switching with high efficiency in many types of electronic devices.

2.5 The IGBT is essentially a power electronic switching device capable of performing active functions like amplification, switching and controlling the flow of electric current or voltage in a circuit. It combines the high-efficiency and fast-switching features of a Metal-Oxide-Semiconductor Field-Effect Transistor ('MOSFET') with the high-current and low-saturation-voltage i.e., high conductivity capabilities of a bipolar transistor such as the Bipolar Junction Transistor ('BJT')

2.6 Structurally, the IGBT consists of a MOSFET-like gate, which controls the flow of current between the collector and emitter, and a BJT-like structure for amplifying the current. This combination allows IGBT to handle high voltage and current levels while maintaining efficient switching. Their ability to switch high currents efficiently while maintaining fast switching times has made them essential in modern electronics.

2.7 IGBT has three terminals attached to three different metal layers, the metal layer of the gate terminal is insulated from the semiconductors by a layer of silicon dioxide (SI02). IGBT is constructed with 4 layers of semiconductor sandwiched together. The circuit diagram of the IGBT indicating two BJT and one MOSFET and a Junction FET ('JFET') with marking of Gate, Collector, and Emitter pins is given below for ease of reference:
 

2.8 The IGBT consists of four semiconductor layers arranged to create a PNPN structure. The collector (C) electrode connects to the P layer, while the emitter (E) is positioned between the P and N layers. This upper P layer is known as the body of the IGBT. The N- layer is designed to establish a current path between the emitter and collector, utilizing a channel formed beneath the influence of the voltage applied to the gate electrode. The N-layer is strategically designed to provide a path for the current to flow between the emitter and collector. This current path is influenced and controlled by the voltage applied to the gate electrode. By varying this voltage, the IGBT can regulate the flow of current through the device, making it an essential component in various power electronics applications as indicated in the diagram below of construction of the IGBT:

2.9 Owing to the properties of the IGBT as described above for providing fastest possible switching of electric currents, thus achieving the lowest possible switching losses, it is the most used power electronic component in industrial applications such as in Unregulated Power Supply ('UPS'), Switch-mode Power Supplies ('SMPS'), battery chargers, solar and wind power plants, home appliances of all types, AC and DC motor drives, in motor controllers, vehicle chargers, vehicle air conditioners of electric vehicles and DC charging piles for charging new energy vehicles.

2.10 In an electric vehicle, the IGBT essentially takes direct current ('DC") from the car's battery and, through the inverter, converts alternating current ("AC") control signals to the high power needed to turn the motor in the vehicle. The IGBT is present in the IGBT power module assembly and physical packaging as several IGBT power semiconductor dies in one package in an electrical vehicle.

2.11 In essence, the IGBT, developed to combine high efficiency with fast switching is a widely used power semiconductor in various industrial applications as mentioned above and also used in electric vehicles forming part of the IGB power module assembly fitted in the electric vehicle providing less wastage of power giving greater mileage to the electric vehicle.

2.12 Images of IGBT and IGBT power module are as under:

Image 1-IGBT
 

2.13 Basis the above description of IGBT, understanding of its functionality in electric vehicles, the Applicant is currently importing IGBT and classifying the same under Customs Tariff Item 8541 29 00-Other' of Semiconductor devices of the Customs Tariff Act. 1975.

Applicant's interpretation of Law/Facts

3.1 The Applicant submitted that in the present case, they satisfies all the three conditions mandated for
filing the application for advance ruling, namely:

(a) The Applicant has been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992;

(b) The Applicant is filing the Application in respect of goods to be imported into India;

(c) The application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act, 1962

(d) The question raised in the application is not pending before any officer of Customs, Appellate Tribunal or any Court and is not already decided by such judicial authorities

Hence, the Applicant seeks for an advance ruling to ask for an appropriate classification of the product "Insulated Gate Bipolar Transistor (IGBT)" under the Customs Tariff Act, 1975.

Classification of "Insulated Gate Bipolar Transistor (IGBT)"

3.2 The classification of goods under the Customs Tariff is governed by the principles as enumerated inthe General Rules of Interpretation ('GRI') set out in the First Schedule to the Customs Tariff Act, 1975 ("Tariff).

3.3 For the purpose of determination of classification of a given product, Rule 1 of GRI is of paramount importance which states that the titles of Section, Chapters and Sub-Chapters are provided for ease of reference only, for legal purposes, classification is to be determined according to the terms of the headings and any relative Section or Chapter Notes.

3.4 The product under consideration for classification is the IGBT which is a three-terminal semiconductor switching device. Due to its advantages of high current-carrying capabilities and high blocking voltages of a bipolar transistor with the capacitive almost zero-power based control of a MOSFET. it is used in a plethora of applications in the field of power electronics. One such application of the product is in EV wherein it is present in the IGBT power module assembly and physical packaging as several IGBT power semiconductor dies in one package for the purpose of distribution and conversion of the DC current from the electric vehicle battery to AC current for use in the electric motor driving the vehicle propulsion.

Customs Tariff Heading 8541 under Chapter 85 relevant for classification of IGBT

3.5 Chapter 85 of the CTA under the purview of Section XVI inter alia covers electrical equipments and parts thereof such as semiconductor devices including transistors under heading 8541 making the terms of this heading with the applicable notes to Section XVI and Chapter 85 relevant for perusal and review to determine classification of the IGBT.

3.6 In relation to the relative Notes to Section XVI, it is imperative to refer Note 2 (a) of Section XVI which provides for classification of parts of machines. It states that parts which are goods of any heading of Chapter 84 or 85 are in all cases to be classified in the respective headings. Relevant extract of Section Note has been reproduced below for ease of reference:

(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8443, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;

3.7 Further, as the IGEtT is a type of semiconductor device, they refer to Chapter notes to heading 8541,
wherein Note 12 defines semiconductor devices as devices whose operation depends on the variations in
resistivity on the application of an electric field. The relevant extract of the note is given below for ease of
reference:

12. For the purposes of headings 8541 and 8542

(a) (1) "Semiconductor devices" are semiconductor devices, the operation of which depends on variations in resistivity on the application of an electric field or semiconductor-based transducers.

3.8 The Applicant on the basis of above definition of the semiconductor device under Note 12 to Chapter 85, understands that resistivity is a material property and is temperature dependant. As a principle, increase in temperature (which is a factor for variation in resistivity) results in decreased resistivity of the semi-conductor whereby making it more conductive. This property is utilized for the application of semiconductors in electronics making the IGBT (which is a type of semi-conductor) ideal to efficiently control or regulate the flow of electronic signal in a circuit due to its enhanced capacity of switching speeds and high conductivity provided by the bipolar transistor.

3.9 In relation to above, they also refer to the HSN explanatory notes to Chapter 85 which states that this Chapter covers electrical goods designed to play a particular role as components in electrical equipment such semiconductor devices are covered under. The relevant extract of the explanatory notes in provided here under:

"(7) Certain electrical goods not generally used independently, but designed to play a particular role as components, in electrical equipment, eg. Capacitors (heading 85.32), switches, fuses, junction boxes, etc. (heading 85.35 or 85.36), lamps (heading 85.39), thermionic, etc., valves and tubes (heading 85.40), diodes, transistors and similar semiconductor devices (heading 85.41) "

3.10 Accordingly, they refer to heading 8541 for the purpose of determining classification of IGBT which inter alia covers transistors. As the name suggests, IGBT is an Insulated Gate Bipolar Transistor which, due to its dual capacity of high switching speed of current contributed by the MOSFET combined with the high conductivity of a bipolar transistor, is able to regulate the flow of electric signals in the circuit resulting in efficient distribution and usage of electric power in an electric vehicle. Therefore, the IGBT being a transistor finds appropriate description for classification under the terms of the heading 8541 and more specifically under the Customs Tariff item 8541 29 00.

HSN Explanatory Notes explicitly lists IGBT under types of transistors under semiconductor device

3.11 In support of the above, they refer to the HSN explanatory notes to heading 8541 which describes
semiconductor devices of this group as devices comprising of one or more 'junctions' between p-type and n-
type semiconductor materials which inter alia includes transistors which are three of four terminal devices
capable of switching of electrical currents. Such transistors include the Insulate Gate Bipolar Transistors or
the IGBT. The relevant extract of the HSN Explanatory Notes is given below for ease of reference:

"The semiconductor devices of this group generally comprise one or more "junctions", between p-type and n-type semiconductor materials. They include:

(II) Transistors are three or four-terminal devices capable of amplification, oscillation, frequency conversion, or switching of electrical currents. The operation of a transistor depends on the variation in resistivity between two of the terminals upon the application of an electric field to the third terminal. The applied control signal or field is weaker than the resulting action brought about by the change in resistance and thus amplification results. Transistors include

(3) Insulated Gate Bipolar Transistors (IGBT), which are three-terminal devices consisting of a gate terminal and two load terminals (emitter and collector). By applying appropriate voltages across the gate and emitter terminals, current in one direction can be controlled, i.e. turned on and turned off. "

3.12 Reliance in relation to reference to HSN Explanatory Notes for classifying a product is placed on the decision of Hon'ble Supreme Court in CCE v. Wood Craft Products Ltd. 1995 (77) E.L.T. 23/1995 taxmann.com 361(SC), in which it was held that in order to resolve a dispute tariff classification, internationally accepted nomenclature emerging from HSN explanatory notes, is a safe guide for classification. The above principle was also recognised in the following rulings of the Apex Court:

• CCE. Bakelite Hylem Ltd. 1997 (91) ELT. 13
   

• Collector of Customs v. Business Forms Ltd. 2002 (142) E.LT. 18
   

• Holostick India Ltd. v. CCE 2015 (318) E.L.T. 529

3.13 Therefore, basis review and analysis of the explanatory note attached to Customs Tariff Heading 8541, it becomes immediately apparent that the IGBT is specifically covered thereunder, as transistor since it meets the description of transistors covered under heading 8541 as evidenced below with reference to the facts of the IGBT:

a. The IGBT is a semiconductor device constructed with 4 layers of semiconductor sandwiched together. The layer closer to the collector is the p+ substrate layer above that is the n- layer, another p layer is kept closer to the emitter and inside the p layer, we have the n+ layers. The junction between the p+ layer and n- layer is called the junction J2 and the junction between the n-layer and the p layer is called the junction J1.

b. Further, IGBT is a transistor type of a semiconductor device whose operation depends on variation in resistivity between two given terminals on application of electric current.

c. Finally, IGBT is a three-terminal semiconductor switching device that is used for fast switching with high efficiency for electric applications.

3.14 In the background of aforementioned terms of heading under 8541 read with the relative Note 12 to Chapter 85 and HSN Explanatory Notes, it is observed that the IGBT could merit classification under the heading 8541 and more specifically under the Customs Tariff item 8541 29 00.

3.15 Further, in relation to the application of such IGBT, it is pertinent to note that the IGBT is present in the IGBT power module assembly and physical packaging as several IGBT power semiconductor dies in one package. This IGBT power module distributes and converts the DC current from the electric vehicle battery to AC current for use in the electric motor driving the vehicle propulsion.

3.16 Therefore, upon consideration of the relevant notes to Section XVI and Chapter 85 and relative HSN Explanatory Notes, it can be construed that the IGBT merits classification under the Chapter 85 only and more specifically under Customs Tariff item 8541 29 00.

3.17 US CROSS Ruling Numbered NY N025506 dated 7 April 2008 classifies insulated gate bi-polar transistor (IGBT) 62mm module under 8541.29.0095, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Transistors, other than photosensitive transistors: Other: Other: Other." US CROSS Ruling Numbered NY 686858 dated 17 July 1997 has held that the applicable subheading for the Insulated Gated Bi-Polar Transistor will be 8541.29.00, Harmonized Tariff Schedule of the United States (HTS), which provides for "Transistors, other than photosensitive transistors, other.

3.18 Reference could also be made to Note 2 of Section XVII which covers chapter 87 of CTA:

"The expressions "parts" and "parts and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this Section:

(f) electrical machinery or equipment (Chapter 85); "

3.19 Additionally, the explanatory note of Section XVII, which specifically addresses Parts and Accessories, provides the following:

"(III) PARTS AND ACCESSORIES

The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, aircraft or equipment concerned.

It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of the following conditions:

(a) They must not be excluded by the terms of Note 2 to this section (see paragraph (A) below).

and (b) They must be suitable for use solely or principally withe articles of Chapters 86 to 88, and

(c) They must not be more specifically included elsewhere in the Nomenclature.

(A) Parts and accessories excluded by Note 2 to Section XVII

This Note excludes the following parts and accessories, whether or not they are identifiable as for the articles of this Section:

(6) Electrical machinery or equipment of Chapter 85... "

3.20 From a conjoint reading of notes to Section XVII along with HSN Explanatory Notes, it could be inferred that electrical machinery or equipment of Chapter 85 would not be classified under Chapter 87 as it is specifically excluded by Note 2 (f) of Section XVII and moreover, find specific mention under the heading 8541 of Chapter 85 as other transistors under semiconductor devices.

3.21 In the instant case, the product under consideration has specifically been excluded by the wording of Note 2 (f) of Section XVII (covering Chapter 86 to 89) which provides that the expressions "parts" and "parts and accessories" do not apply to the electrical machinery or equipment (Chapter 85). Additionally, the IGBT finds a multitude of applications in power electronics where its properties such as fast switching as explained in detail above makes it a widely suitable article where efficient electronic activity is required and not a specific item suitable solely for one single or limited end-use such as automotive applications. Furthermore, there is a more specific CTH as against general CTH under Chapter 87. Therefore, the product under consideration cannot be classified under the Chapter 87 in view of the conditions at point (a) and (c) of the aforementioned.

3.22 Conclusively, as parts to be classified under 8705 must satisfy all the three conditions for "Parts and Accessories" discussed above, the IGBT doesn't satisfy any of the conditions i.e. the IGBT is excluded by the terms of Note 2 to Section XVII, it is not limited to use solely or principally for one particular type of applications and it is covered more specifically under the ambit of heading 8541 as explained in the above paragraphs. Therefore, the IGBT could not classified as parts of motor vehicles of heading 8701 to 8705 under the heading 8708 of Chapter 87.

3.23 Taking into account the aforementioned factors, the classification of the Insulated Gate Bipolar Transistor or the IGBT under Customs Tariff Heading 8541 as semiconductor devices and more specifically under the Customs Tariff item 8541 29 00 as 'other transistors' is evidenced basis its technical description and product literature. Additionally, it is also distinctly excluded from being classified as 'parts and accessories' of motor vehicles as stated in Note 2 (f) of Section XVII as well as the relevant explanatory notes of the Customs Tariff Act whereby it could not merit classification as parts of motor vehicles under Customs Tariff Heading 8708.

3.24 Reliance is placed on Mauri Yeast India Pvt. Ltd. vs. State of UP. 2008 ((225) E.LT. 321 (S.C.)] wherein it was held by the Hon'ble Supreme Court that if there is a conflict between two entries one leading to an opinion that it comes within purview of tariff entry and another the residuary entry, the former should be preferred. Further, in the case of Dunlop India Ltd. & Madras Rubber Factory Ltd. vs. Union of India and Orx. 1983 (13) E.L.T. 1566 (S.C.), it was held by the Hon'ble Supreme Court that an article classifiable under specific item cannot be classified under residuary Item.

Port of Import and reply from concerned jurisdictional Commissionerate

4.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. Insulated Gate Bipolar Transistor (IGBT) at the jurisdiction of Office of the Commissioner of Customs, Air Cargo Complex, Mumbai; NS-V, INCH; and JNPA SEZ, JNCH. The applications were forwarded to the Office of the concerned commissionerates for their comments on 19.03.25, 24.03.25, 04.04.25, 11.04.25, 17.04.2025, 28.04.25, 06.05.25 & 23.05.25.

4.2 The concerned Commissionerate i.e. Air Cargo Complex, Mumbai vide their letter dated 13.05.2025 submitted as follows:

• An IGBT is a three-terminal power semiconductor device used primarily as an electronic switch, combining the high efficiency and fast switching of a MOSFET with the low saturation voltage of a bipolar transistor. It is widely used in applications such as inverters, motor drives, power supplies, and renewable energy systems. For classification purposes, the key characteristics are: It is a semiconductor device. It functions as a transistor with a metal-oxide-semiconductor (MOS) gate structure. It is typically a discrete component or part of a module used in electronic circuits.
   

• It can be seen that "transistor" is specifically mentioned for the headings 8541 and 8542 in the Note 12 of Chapter 85. Thus, the Section and Chapter Notes confirm that IGBTs, as transistors, are correctly classified under Heading 8541.
   

• The Explanatory Notes clarify that IGBTs, as transistors or similar semiconductor devices, fall under Heading 8541, with no indication of classification elsewhere (e.g., as parts of other machines). The HSN Explanatory Notes, published by the World Customs Organization (WCO), provide detailed guidance on classification and have strong persuasive value in India, as affirmed by the Supreme Court in cases like CCE v. Uni Products India Ltd. (2020).
   

• Based on the above analysis, in our opinion, the CTH classification code for an Insulated Gate Bipolar Transistor (IGBT) appears to be 85412900.

4.3 The concerned Commissionerate i.e. NS-V, JNCH vide their letter dated 30.05.2025 submitted as follows:

• The product under consideration for classification is the IGBT which is three-terminal semiconductor switching devices that is used for the fast switching with high efficiency in many types of Electronic devices. IGBT is the core component of electric vehicles, and its application includes motor controller, vehicles chargers, vehicle air conditioners and DC charging piles for charging new energy vehicles.
   

• The Insulated Gate Bipolar Transistor is classifiable under CTI 85412900 (Other) of the First Schedule of the Customs Tariff Act, 1975.

Details of Hearing

5.1 A hearing was held on 16.06.2025 at 12.45 PM. Ms. Ruchi Bhat and Shri Amit Jain, authorized representatives on behalf of the applicant appeared for the hearing and reiterated the contention submitted with the application. They submitted that the subject goods i.e. Insulated Gate Bipolar Transistor is three terminal semiconductor switching used in several high efficiency electronic devices. The subject goods are more specifically included under CTI 85412900(Other) as Transistor. They also contended that the subject goods are not classifiable under CTH 8708.

Nobody appeared on behalf of the Department for hearing.

Discussion and findings

6.1 1 have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing and comments received from the concerned Commissionerates. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework.

6.2 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act.

6.3 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes.

6.3.1 The Applicant submitted that Insulated Gate Bipolar Transistor (IGBT) is a three-terminal semiconductor switching device used for fast and efficient switching in electronic circuits. It combines the fast-switching and voltage-controlled features of a MOSFET with the high-current and low-saturation-voltage (i.e., high conductivity) characteristics of a BJT. Structurally, the IGBT has a MOSFET-like gate that controls current flow between the collector and emitter, and a BJT-like section for current amplification. It consists of four semiconductor layers, with the gate terminal insulated by a layer of silicon dioxide (Si02). IGBTs are widely used in modern electronics due to their high efficiency, fast switching, and ability to handle large voltages and currents.

6.3.2 From the submission made by the applicant, it can be understood that Insulated Gate Bipolar Transistor (IGBT) is a semiconductor device used in power electronics for switching and amplifying electrical power. The heading 8541 covers "Semiconductor devices (e.g., diodes, transistors, and similar semiconductor devices, including photovoltaic cells, whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals)". The relevant entries and Explanatory Notes to CTH 8541 under the category of 'A- Semiconductor Devices' is extracted as below;.'

(A) SEMICONDUCTOR DEVICES (FOR EXAMPLE DIODES, TRANSISTORS, SEMICONDUCTOR BASED TRANSDUCERS)

These are defined in Note 12 (a) (i) to this Chapter.

The operation of the devices of this group is based on the electronic properties of certain "semiconductor" materials or, for the purpose of semiconductor-based transducers, on their semiconductor properties including physical (e.g., mechanical, thermal), electrical, optical and chemical properties.

The main characteristics of these materials is that at room temperature their resistivity lies in the range between that of conductors (metals) and that of insulators. They consist, for instance, of certain ores (e.g., crystal galena), tetravalent chemical elements (germanium, silicon, etc.) or combinations of chemical elements (e.g., trivalent and pentavalent elements, such as gallium arsenide, indium antimonide).

Semiconductor materials consisting of a tetravalent chemical element are generally monocrystalline. They are not used in their pure state but after very light doping (in a proportion expressed in parts per million) with a specific "impurity" (dopant).

For a tetravalent element, the "impurity" may be a pentavalent chemical element (phosphorus, arsenic, antimony, etc.) or a trivalent element (boron, aluminium, gallium, indium, etc.). The former produce n-type semiconductors with excess electrons (negatively charged); the latter produce p-type semiconductors with electron deficiency, that is to say that holes (positively charged) predominate.

Semiconductor materials combining tri- and pentavalent chemical elements are also doped.

In the semiconductor materials consisting of ores, the impurities contained naturally in the ore act as dopants.

The semiconductor devices of this group generally comprise one or more "Junctions", between p-type and n-type semiconductor materials.

They include:

(I) Diodes which are two-terminal devices with a single p n junction; they allow current to pass in one direction (forward) but offer a very high resistance in the other (reverse). They are used for detection, rectification, switching, etc.

The main types of diodes are signal diodes, power rectifier diodes, voltage regulator diodes, voltage reference diodes.

(II) Transistors are three or four-terminal devices capable of amplification, oscillation, frequency conversion, or switching of electrical currents. The operation of a transistor depends on the variation in resistivity between two of the terminals upon the application of an electric field to the third terminal. The applied control signal or field is weaker than the resulting action brought about by the change in resistance and thus amplification results.

Transistors include:

(1) Bipolar transistors, which are three-terminal devices consisting of two diode type junctions, and whose transistor action depends on both positive and negative charge carriers (hence, bipolar).

(2) Field effect transistors (also known as metal oxide semiconductors (MOS)), which may or may not have a junction, but which depend on the induced depletion (or enhancement) of available charge carriers between two of the terminals. The transistor action in a field effect transistor employs only one type of charge carrier (hence, unipolar). A parasitic body diode, which is produced in a MOS type transistor (also known as MOSFET), may operate as a freewheeling diode during inductive load switching. MOSFET which have four terminals are known as tetrodes.

(3) Insulated Gate Bipolar Transistors (IGBT), which are three-terminal devices consisting of a sate terminal and two load terminals (emitter and collector). By applying appropriate voltages across the sate and emitter terminals, current in one direction can be controlled, i.e. turned on and turned off. IGBT chips may be incorporated with diodes in a single package (packaged IGBT devices), which protect the IGBT device and allow it to continue to function as a transistor".

6.3.3 From the above Explanatory Notes, it is evident that a transistor is defined as a three- or four-terminal device that utilizes the electronic properties of semiconductor materials (such as silicon, appropriately doped with impurities) to control the flow of electrical current, thereby enabling functions like amplification and switching. Specifically, an Insulated Gate Bipolar Transistor (IGBT) is a three-terminal device consisting of a gate, collector, and emitter. It operates by applying a voltage across the gate and emitter terminals, which allows it to control the current flowing between the collector and emitter. This operation is facilitated through the creation of semiconductor junctions within the device. An IGBT integrates the input characteristics of a Metal-Oxide Semiconductor Field Effect Transistor (MOSFET), offering high input impedance and efficient gate control, with the output characteristics of a bipolar junction transistor (BJT), providing high current handling capability. Functionally, the IGBT controls current using a small voltage applied to the gate terminal, thereby performing the essential function of a transistor. The explanatory notes specifically list IGBTs as an example of a transistor, reinforcing that they fall within the scope of heading 8541. Therefore, based on its structure, function, and explicit mention in the Explanatory Notes, the Insulated Gate Bipolar Transistor (IGBT) is rightly classifiable as a transistor under Customs Tariff Heading 8541.

6.3.4 As per the entries specified under Customs Tariff Heading (CTH) 8541 in the First Schedule to the  Customs Tariff Act, 1975, it is observed that the second single-dash (-) entry under CTH 8541 includes "Transistors, other than photosensitive transistors'''. Further, within this category, there are two double-dash (—) entries: sub-heading 85412100 covers "With a dissipation rate of less than 1 W, while sub-heading 85412900 covers "Other". The latter is a residual entry. The applicant has submitted that the Insulated Gate Bipolar Transistors (IGBTs) in question are used in IGBT modules for electric vehicles, where they are employed to switch large currents at high voltages in order to drive the electric motor. It is noted that IGBTs in such applications typically dissipate high power, usually above 50W and often extending to several hundred watts, depending on the design and load conditions. Their dissipation rates are significantly higher than the 1W threshold typically associated with small-signal transistors. Therefore, by applying General Interpretative Rule (GIR) 1 and in accordance with the Explanatory Notes to Heading 8541, the product in question, namely the Insulated Gate Bipolar Transistors (IGBT), is classifiable under sub-heading 85412900 (Other) of the First Schedule to the Customs Tariff Act, 1975.

7. The concerned jurisdictional commissionerate, i.e. Air Cargo Complex, Mumbai has submitted that an Insulated Gate Bipolar Transistor (IGBT) is a three-terminal power semiconductor device used primarily as an electronic switch, combining the high efficiency and fast switching characteristics of a MOSFET with the low saturation voltage of a bipolar transistor. It functions as a transistor with a metal-oxide-semiconductor (MOS) gate structure and is typically a discrete component or part of a module used in electronic circuits. Since IGBTs are discrete semiconductor devices (transistors) explicitly covered under Heading 8541, even if they are designed for use in a specific machine (such as an inverter or motor drive), they are classified under Heading 8541 because they are specifically described therein, overriding any alternative classification as a "part" of another machine. The Explanatory Notes clarify that IGBT, as transistors or similar semiconductor devices, fall under Heading 8541, with no indication of classification elsewhere (such as parts of other machines). Based on the above analysis, they arrive at the conclusion that the appropriate classification for an Insulated Gate Bipolar Transistor (IGBT) is under CTH 85412900.

The other concerned Commissionerate, i.e., NS-V, JNCH, has also submitted that the IGBT is a three-terminal semiconductor switching device used for fast and efficient switching in various types of electronic equipment. It is a core component in electric vehicles,  with applications in motor controllers, vehicle chargers, air conditioning systems, and DC charging stations for electric vehicles. Accordingly, it has been submitted that the IGBT is classifiable under CTI 85412900 (Other) of the First Schedule to the Customs Tariff Act, 1975.

I concur with the view expressed by both concerned jurisdictional commissionerates.

8. In view of the above facts and circumstances of the case, I reach to conclusion that the product in question namely, Insulated Gate Bipolar Transistor (IGBT) merit classification under CTH 8541 (Semiconductor devices (e.g., diodes, transistors, and similar semiconductor devices, including photovoltaic cells, whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals), more specifically under CTI 85412900 (Transistors, other than photosensitive transistors-Other) of the First Schedule of the Custom Tariff Act, 1975.

9. I rule accordingly.

(Prabhat K. Rameshwaram)         
Customs Authority for Advance Rulings,
Mumbai.              

F. No. CAAR/C US/A PPL/37,38 & 39/2025-O/o Commr-CAAR-Mumbai       Dated: 20-06-2025

This copy is certified to be a true copy of the ruling and is sent to:

1. TACO Prestolite Electric Private Limited,
Off Law College Road, Plot No. 20-B,
FPN085, Taco House, V.G. Damle Path,
Erandwane, Pune, Maharashtra-410 004.
{Email: Deepak.tisge@tacoprestolite.com]

2. The Commissioner of Customs(Import),
Air Cargo Complex,
Sahar, Andheri (East), Mumbai- 400099
Email: import.acc@gov.in

3. The Pr. Commissioner of Customs, NS-V, JNCH,
Nhava Sheva, Tal: Uran Distt: Raigad, Maharashtra-400707.
(Email: commr-ns5@KOv.in)

4. The Commissioner of Customs(G),
JNPA SEZ, JNCH, Nhava Sheva, Tal-Uran,
Distt-Raigad-400707.
Email- commr-nsgen@gov.in

5. The Customs Authority for Advance Rulings,
Room No. 24, New Customs House,
Near IGI Airport New Delhi-110037.
Email: cus-advrulings.del@gov.in

6. The Principal Chief Commissioner of Customs, Mumbai Customs Zone-I, Ballard Estate,
Mumbai -400001. Email: ccu-cusmum 1 @nic.in

7. The Commissioner (Legal), CBIC Offices,
Legal/CX.8A, Cell, 5th floor, Hudco Vishala Building,
C-Wing, Bhikaji Cama Place, R. K. Puram, New Delhi - 110066.
Email: commr.leual-cbec@nic.in

8. The Member (Customs), Central Boards of Indirect Taxes & Customs, North Block, New Delhi-110001 ..Email: membercus.cbic@uov.in

9. The Webmaster, Central Boards of Indirect Taxes & Customs. Email: webmaster.cbec@icegate.uov.in

10. Guard file.

(Vivek Dwivedi)           
Dy. Commissioner & Secretary
Customs Authority for Advance Rulings.
Mumbai