TaxTMI 
TaxTMI 
2016 (2) TMI 855
X X X X Extracts X X X X
X X X X Extracts X X X X
.... external memory of up-to 64GB. It has a support system for micro SD cards. Most of the specifications of the hardware and the software installed in the product, matches with the other mobile phones of the Galaxy series. However, one of the distinguishing features of this product from its predecessor in the Galaxy series is the quality of its camera. It is equipped with a 20.7MP BSI CMOS having 10x Zoom, w/Flash. Other important feature of the product is its In-Call feature. This allows the user of the product to capture and share an image even when on call, with a simple twist of zoom ring. 2. The questions on which advance ruling is sought by the applicant are as follows:- (c) Whether the product is rightly classifiable as a telephone under Custom Tariff Heading (hereinafter referred to as "CTH") 8517 or as a Camera under CTH 8525? (d) If the correct classification of the product is under CTH 8525, then whether the applicant is entitled to the benefit of the exemption provided under the Notification 25/2005? 3. Applicant submits that there are two competing headings in which the said product can be covered i.e. 8517 and 8525. Applicant submits that items t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....had approached the Customs Valuation and Classification Institute, Korea Customs Service for classifying Galaxy S4 Zoom which is the predecessor of the product. The said Institute on the basis of the structure, functions and price ratio of the product has provided that the product is classifiable as tariff item number 8517 12 9010 i.e. under the category of cordless phone. The applicant also imported S4 Zoom in the USA, where the US Customs and Border Protection has classified the product under H.S.Number 8517120050. The Customs Entry Advice of UK has also classified the product under CTH 8517120090. 6. Applicant submits that if the essential character to the product is given by the camera, then in such a situation, the product will be classifiable as Customs Tariff item no.8525 80 20, as Digital Camera .Notification No. 25/2005-Cus. exempts certain goods from whole of customs duty leviable thereon under the first schedule. At serial number 13 of the said notification, digital still image cameras are provided. This exemption is subject to the condition that for the purposes of this entry,"digital still image video camera" means a digital camera not capable of recording video wit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and instantly sends it via MMS. The Mobile Phone available in the market does have a zoom facility in the camera but this is a digital zoom not the optical zoom. 8. Revenue further submits that the applicant had imported Galaxy S4 Zoom, which is predecessor model to Galaxy K Zoom proposed to imported; that the Department vide adjudication order classified Galaxy S4 Zoom under CTH 8525 8020, as digital camera. Revenue further submits that the product Galaxy K Zoom proposed to be imported by the applicant is to be classified under CTH 8525 8020 as camera, in view of Note 3 to Section XVI of the Import Tariff, as camera performs the principle function in the Galaxy K Zoom. In support of their contention, Revenue relied upon the judgment of the Hon'ble Supreme Court in the matter of Xerox India Ltd. Vs. Commissioner of Customs, Mumbai 2010 (260) ELT 161 (SC) as also Tribunal's order in case of Collector of Customs, New Delhi vs. Apsom Computers Ltd. 2001 (130) ELT 660 (Tri - Del.). Revenue also submits that as per technical specification provided by the applicant on Google and other websites, the subject device has specifically been designed and marketed by Samsung as a Came....
X X X X Extracts X X X X
X X X X Extracts X X X X
....PHONESETS, INCLUDING TELEPHONESFOR CELLULAR NETWORKSOR FOR OTHER WIRELESS NETWORKS (B) Telephones for cellular networks or for other wireless networks. This group covers telephones for use on any wireless network. Such telephones receive and emit radio waves which are received and retransmitted, e.g., by base stations or satellites. These include, inter-alia: (1) Cellular phones or mobile phones (2) Satellite phones. 85.25 (B) TELEVISION CAMERAS, DIGITALCAMARASAND VIDEO CAMERARECORDERS This group covers cameras that capture images and convert them into an electronic signal that is: (1) Transmitted as a video image to a location outside the camera for viewing or remote recording (i.e., television cameras); or (2) Recorded in the camera as a still image or as a motion picture (i.e., digital cameras and video camera recorders) Many of the cameras of this heading may physically resemble the photographic cameras of heading 90.06 or the cinematographic cameras of heading 90.07. The cameras in heading 85.25 and the cameras in Chapter 90 typically include optical lenses to focus the image on a ligh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o click picture and send them via multimedia message while on call, in our view is not correct, as such additions are related to the phone and not to the camera. It also may not be appropriate to shift classification of the product from the category of mobile phone to camera, on the basis of said 3 additional features i.e., higher megapixel, optical zoom and click picture and transmit the same while on call. 16. Revenue further submits that as per technical specification provided by the applicant on Google and other websites, the subject product has been specially designed and marketed by Samsung as a camera, wherein mobile facility and other applications are only additional features; that consistent with Note 3 to Section XVI, the product appears to be classifiable under CTH 8525 8020. Applicant refutes this allegation of the Revenue and submits that the applicant has always placed the impugned goods in the category of smart phone and not under camera. Applicant submitted snapshot of the website of the applicant. We have examined said snapshot and observe that the subject product has been described as "smart phone" and not camera. 17. Further, Galaxy K Zoom is also classifia....