TaxTMI 
TaxTMI 
2022 (1) TMI 622
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....y in Column 13 of the application Form CAAR-1, requested that in terms of provisions of Regulation 13 of the Customs Authority for Advance Rulings Regulations, 2021 (CAAR Regulations, in short), Central Board of Indirect Taxes and Customs (C.B.I. & C., in short) may designate a Principal Commissioner/Commissioner, in the matter. Accordingly, upon reference by the Secretariat of CAAR, New Delhi, C.B.I. & C. vide letter dated 5-4-2021 designated the Principal Commissioner of Customs, ACC (Import), New Customs House, New Delhi under the provisions of the Customs Act, 1962 read with the CAAR Regulations. 3. On designation of Principal Commissioner of Customs, ACC Import, New Delhi, in the matter, Secretariat of CAAR, New Delhi sought comments of the designated Principal Commissioner on the application for advance ruling, vide letter dated 8-4-2021. The comments of the Principal Commissioner of Customs, ACC (Import), New Delhi vide their letter dated 1-6-2021 have been received. 4. The applicant has sought ruling regarding appropriate classification of the following eleven (11) devices, which are proposed to be imported by the applicant from March, 2021. These eleven dev....
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....tions and features. It additionally has LED display for viewing time and showcasing daily information such as current time, temperature, air quality, current state of timers and alarms, etc. This devices is not MIMO enabled. (iv) Echo Show 5 - Digital Media Receiver (With Display Screen) with Model No. H23K37 (Echo Show 5, in short); Echo Show 5 also has a screen with front camera. With the help of this product, a user can perform various functions including accessing visual information panels. It also has manual shutter to close the camera. It has 5.5" display screen which is used for video calling with the help of camera and microphone etc. This device is not MIMO enabled. (v) Echo Show 8 - Digital Media Receiver (With Display Screen) with Model No. C7HGN3 (Echo Show 8, in short); Echo Show 8 has an 8' display screen. With the help of this product, a user can perform various functions including accessing visual information panels. The display screen can be used for video calling with the help of camera and microphone, video streaming, watching movies/online shows (on Netflix/Amazon prime/Hotstar etc.), photo ....
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.... acoustics so that they are adapted to the room they are placed in. Further, Echo Studio has an embedded temperature sensor and a built-in Zigbee smart home hub that can control Zigbee light bulbs, locks, sensors, plugs and in-wall switches. Echo Studio is MIMO enabled. (ix) Echo Auto - Media Transmission Device with Model No. BP39CN (Echo Auto, in short); Echo Auto has all the common features, except it does not have a speaker for audio playback. Echo Auto has an in-built speaker for use only during initial device setup. The device is meant to be used in a motor vehicle and allows its users to connect their smartphone to the device via Bluetooth and use Alexa services in their vehicle. Echo Auto uses the data services of the smartphone connected to it to access the cloud and perform its functions. It is not capable of connecting to the internet by itself. However, Echo Auto does not have a screen or speakers for playing output media (in-built speaker is only for initial device setup). Further, the device cannot connect to the cloud on its own, but accesses the same via a smartphone through the Alexa app. This device is not MIMO enabled. (x)&n....
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....forementioned, the applicant has submitted the following questions for advance ruling : (a) Whether the Subject Devices proposed to be imported by the applicant are classifiable under Customs Tariff Item 8517 62 90? (b) If the answer to the above question (a) is in the negative, then, what is the appropriate classification of the Subject Devices under the Customs Tariff Act, 1975 and effective rate of duty under such appropriate classification? (c) If the answer to question (a) is in the positive, whether the applicant is eligible to claim benefit of Serial Number 20 of Notification No. 57/2017-Cus., dated 30-6-2017, as amended by Notification No. 3/2021-Cus., dated 1-2-2021 on import of Echo Show 5, Echo Auto, Echo Flex, Echo Dot 4th Generation and Echo Dot 4th Generation with Clock? 6. The comments received from the office of the Principal Commissioner of Customs, ACC (Import), New Delhi have been shared with the applicant, as required under the CAAR Regulations. The concerned Principal Commissioner of Customs has stated, inter alia that all the eleven items are appropriatel....
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....Sh. Lakshmikumaran, explained each of the goods covered by the applications, highlighting the salient features of the product and argument in support of the suggested classification of the Echo Family devices. 9. On the basis of the scrutiny of the application, submissions made during the personal hearing and comments of the concerned Principal Commissioner of Customs, the application is found to be valid in terms of the provisions of the Customs Act and the CAAR Regulations. Therefore, the application is allowed in terms of Section 28-I(2) of the Customs Act, 1962 read with Regulation 10 of the CAAR Regulations, 2021. 10. Further, having gone through the details of the goods as described in the application, comments of the designated Principal Commissioner, submissions made at length during the personal hearing, and on perusal of other relevant material, I proceed to decide the matter and give ruling on the questions raised in the application. 11. At this juncture, I find it relevant to briefly discuss as to how these devices have been described on the website www.amazon.in, noting the salient features and functions of the products being highlighted. 11.....
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....fits into your stereo system; the inputs and outputs provide compatibility with existing digital and analogue audio. 11.11 Echo Link Amp : Stream and amplify hi-fi music to your speakers; upgrade your speakers with a built-in 60W, 2-channel amplifier, high fidelity streaming music and Alexa. 12. The determination of classification of the aforesaid devices would involve interpretation of General Rules for Interpretation of Import Tariff. Further, in determining classification of goods proposed to be imported, guidance of the Harmonized Commodity Description and Coding System of the World Customs Organization, to which India is a signatory, would also be useful. 12.1 Rule 1 of the GI Rules lays down that 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. 12.2 Rule 3 of the GI Rules provides as below : "3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as fol....
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....rs and Projectors, not incorporating Television Reception Apparatus, Reception Apparatus for Television, whether or not incorporating Radio Broadcast Receivers or Sound or Video Recording or Reproducing Apparatus. Thus Heading 8528 covers mainly three category of goods, namely (i) Monitors not incorporating Television reception apparatus, (ii) Projectors not incorporating Television reception apparatus and (iii) Reception Apparatus for Television. 13. On the basis of the product description and functions submitted by the applicant and as advertised by the applicant to the public as large vide <www.amazon.in>, I find that the principal function of the three devices, namely, Echo 4th Generation, Echo Dot 4th Generation and Echo Dot 4th Generation with Clock is to reproduce sound and act as speaker. Admittedly, for these devices to function as speaker, they accept voice commands and with wifi capability manage to get the input sound for reproduction from various web channels. These devices are essentially required to have internet connectivity and the same is made feasible by virtue of wifi capability of such devices. These features make the devices as "smart" speakers, retain....
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.... control which lets you use your voice to control compatible smart home devices and get help from Alexa in more places in your home. On the website <www.amazon.in> Echo Flex is described as "Plug-in Echo for smart home control." Further, the website informs that "this plug-in Echo device lets you use your voice to control compatible smart home devices and get help from Alexa in more places in your home." Therefore, Echo Flex is a communication device, akin to apparatus covered under Heading 8517 of the Import Tariff. It is therefore classifiable under Heading 8517; and more specifically under sub-heading 8517 62 90 covering other machines for the reception, conversion and transmission of voice, images or other data. 13.3 The device Echo Studio has been described in the website <www.amazon.in> as smart speaker with high fidelity audio, Dolby Atmos and Alexa; immersive sound-5 speakers produce powerful bass, dynamic midrange and crisp highs; Dolby Atmos technology adds space, clarity and depth making Echo Studio the best sounding Echo device; five strategically positioned speakers place each instrument and vocal around the room just the way the artist intended; three mid-rang....
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....mit the audio signal to output speakers, as are received from the input devices. Therefore, for determining the classification of this device, the question that needs to be answered is role/significance of the built-in amplifier, since audio-frequency electric amplifiers merit classification under sub-heading 8518 40 00. On careful consideration of the product description, I find that the built-in amplifier is an additional feature of the device, not the principal determining feature, with the device having relevance even without the use of amplification feature. Therefore, holding that the principal function of Echo Link Amp is also of reception, conversion and transmission or regeneration of voice or other data, I find that the device merits classification under Heading 8517 of the Import Tariff; and more specifically under sub-heading 8517 62 90 as other machines for the reception, conversion and transmission of voice, images or other data. 14. Having decided the question of classification of the eleven devices, I now move to the question of eligibility of the applicant to claim benefit of Serial Number 20 of Notification No. 57/2017-Cus., dated 30-6-2017, as amended by ....