AI Drafter 
TaxTMI 
TaxTMI 
2023 (2) TMI 1206
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.... of the pending application. The applicant, vide their communication dated 25-2-2021, informed that they are still interested in receiving the advance ruling and also that they will submit the application in the revised format in due course. Thereafter, the said application was e-mailed by the applicant in July, 2021, which was followed by physical submission of the application in August, 2021. 2. In the said application, the applicant has expressed their desire to import the subject goods through air cargo complexes of New Delhi, Mumbai, Chennai and Bengaluru as well as the sea ports of Chennai and Nhava Sheva, Raigad as envisaged under Section 28-I(1) of the Customs Act, 1962 read with the relevant regulations in force. 3. The comments of the aforesaid six Principal Commissioners/Commissioners of Customs in respect of the original application regarding classification of Fire TV Stick filed before the erstwhile AAR are on record. However, after receipt of fresh application in light of the Customs Authority for Advance Rulings Regulations, 2021, letters were again sent to the said Commissionerates. The comments, which were received from the Commissionerates, were further shar....
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....ng advance ruling application. However, it was pointed out to the representative of the applicant that in the pending writ petition the erstwhile AAR was also a respondent, and therefore, no decision on pending advance ruling application is possible, unless the Hon'ble High Court finally disposes of the writ petition or the applicant withdraws the writ petition. 6. Sh. Lakshmi Kumaran stated that they will withdraw their writ petition before the Hon'ble High Court and inform the Secretariat of the CAAR, Mumbai. Subsequently, Vide Order No. CAAR/Mum/ARC/01/2021, dated 13-12-2021, the Secretary to the CAAR, Mumbai was directed to place this matter for decision only when one of the two scenarios outlined in the preceding paragraphs takes place. 7. Thereafter, the applicant informed the Secretariat of CAAR, Mumbai vide email dated 23-11-2022 enclosing therewith the final order of the Hon'ble Bombay High Court dated 9-11-2022 the disposal of a Writ Petition No. WP/474/2020, whereby the CAAR, Mumbai has been directed to decide the said application within twelve weeks. The Hon'ble Bombay High Court held : "By consent and keeping open all rights and contentions of the partie....
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...., Near I.G.I. Airport, New Delhi (e) The Pr. Commissioner of Customs (III), (Import), Air Cargo Complex, Sahar, Andheri (East), Mumbai (f) The Commissioner of Customs (Nhava Sheva -V), Jawaharlal Nehru Customs House, Nhava Sheva, Tal Uran, District Raigad, Maharashtra - 400707; 10. I observed that the comments were received from the jurisdictional Pr. Commissioners/Commissioners and the same were forwarded to the applicant for submitting the applicant's response. (a) Comments received from the Pr. Commissioner of Customs, ACC, Bengaluru has opined for the Fire TV stick to be classified under Tariff Heading 8528 73 90. They have supported their claim by stating that : "Fire TV Stick can be used only when it is connected to the HDMI port of the HD Television and the programmes can be viewed with internet connection via Wifi and programmes to be seen can be controlled with the remote, the product is rightly classifiable under Chapter Heading No. 8528 73 90 (Other), in view of the exclusion of the transmission or reception apparatus of heading 8528 in Chapter Heading 851....
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....ox is thus essentially a hardware device that allows a digital signal to be received, decoded and displayed on a television. • As per the catalogue, Fire TV Stick does not receive signals from satellite/cable/terrestrial but gets its input from Wi-Fi. • Hence, based on the above, 8517 69 60 does not appear to be the appropriate classification for the product. • 8517 62 90 (Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus-Other) : • Explanatory notes issued by WCO (World Customs Organization) for CTH 8517 states that it excludes apparatus for the transmission or reception of radio-broadcasting or television signals. • Wi-Fi frequency range is based on IEEE 802.11 protocol and is different from that of a television signal. • The catalogue states that the product is connected to the display device following which it allows the user to access data available on Netflix, Amazon Instant Video, HBO Now and Hulu Plus etc. • The product transmits the instructions sent by the user, converts them in the form ....
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.... that the communication apparatus includes one which allows for the connection to a wired or wireless communication network or the transmission or reception of speech or other sounds, images or other data within such network. The items to be classified under - CTH 8517 are principally equipment for transmission and reception of voice, image or data. In other words, transmission or reception of voice, image or data must be the principal function for a product classifiable under CTH 8517. Section XVI covers all sorts of mechanical and electrical appliances/equipment etc. Chapters 84 and 85 come under section XVI. Chapter 85 of Schedule I to the Tariff Act covers various types of Electrical machinery and equipment including apparatus for transmission, reception and conversion of voice, images or other data. HSN Explanatory Notes to Chapter Heading 8517 provides that "These apparatus (apparatus for telegraphic communication other than, facsimile machines of heading 8443) are essentially designed for converting characters, graphics, images or other data into appropriate electrical impulses, for transmitting those impulses, and at the receiving end, receiving these impulses and ....
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....e proceeding further, I observe that in the similar cases of Fire TV Stick vide Ruling No. CAAR/Mum/ARC/68-69/2021, dated 8-12-2021 in case of Application No. CAAR/CUS/APPL/28-29/2021-O/o Commr-CAAR-Mumbai filed by M/s. Amazon Seller Services Pvt. Ltd. [(2023) 5 Centax 186 (A.A.R. - Cus. - Mum.)] it was inter alia held by this authority that : "9. In the two applications for advance rulings before me, a decision on classification has been requested on two Fire TV Stick kits consisting of a HDMI digital media receiver paired with two types of wireless remotes. Besides, the applicant has also sought rulings on classification of these two types of remotes separately. Therefore, before proceeding further, it is necessary to examine the functionalities of each of these three devices. The HDMI digital receiver has a 1.7 Ghz quad-core processor and 8 GB of storage. It has dual band 2x2 802.11 AC Wi-Fi with support for 5 GHz networks allowing streaming at up to 1080p at 60fps. The receiver provides HD/HDR support on compatible televisions. The HDMI digital media receiver is described by the applicant as network appliance and entertainment device for streaming digital audio/video c....
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....onversion and transmission of voice, images or other form of data merits classification under six-digit Tariff Entry 8517 62. The Commissioner of Customs (Import), Chennai Sea Port, is of the opinion that the function of digital media receiver is to broadcast/transmit signals to televisions and therefore, merits classification under sub-heading 8525 50 30. As far as the contending Tariff Entry 8528 is concerned, it appears to be an unsuitable tariff entry for the device under consideration in the present proceedings in so far as the said entry is primarily suitable for receivers of television broadcast signals, whereas, the device under consideration does not receive signals from satellite/cable/terrestrial sources for display on television screens. Therefore, it is my considered opinion that the suggestion of the Ld. Commissioner is not tenable. I have also noticed that the Customs Authority for Advance Rulings, New Delhi, for the identical device, considered and rejected the sub-heading 8528 71 00 and held that digital media receiver discussed here is rightly classifiable under sub-heading 8517 62 90." 12. In the similar case of classification of identical device Fire TV Stick....
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....5.17, the term "smartphones" means telephones for cellular networks, equipped with a mobile operating system designed to perform the functions of an automatic data processing machine such as downloading and running multiple applications simultaneously, including third-party applications, and whether or not integrating other features such as digital cameras and navigational aid systems." "This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electro-magnetic waves in a wireless network. The signal may be analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks." (I) xx xx xx (II) Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) (A) ....
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....face cards (e.g., Ethernet interface cards). (2) Modems (combined modulators-demodulators). (3) Routers, bridges, hubs, repeaters and channel to channel adaptors. (4) Multiplexers and related line equipment (e.g., transmitters, receivers or electro-optical converters). (5) Codecs (data compressors/decompressors) which have the capability of transmission and reception of digital information. (6) Pulse to tone converters which convert pulse dialled signals to tone signals. PARTS Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the apparatus of this heading are also classified here. The heading also excludes : (a) Facsimile machines (heading 84.43). (b) Perforating machines, whether or not electric, used to perforate paper bands ready for use in automatic telegraphic apparatus (heading 84.72). (c) Induction coils for ....
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....D (organic light-emitting diodes) and plasma, to display images. Monitors and projectors may be capable of receiving a variety of signals from different sources. However, if they incorporate a television tuner they are considered to be reception apparatus for television. (A) Monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71 (B) Monitors other than those capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71 (C) Projectors (D) Reception apparatus for television This group includes apparatus whether or not designed to incorporate a video display or screen, such as : (1) Receivers of television broadcasts (terrestrial, cable or satellite) which do not include a display device (CRT, LCD, etc.). These apparatuses receive signals and convert them into a signal suitable for display. They may also incorporate a modem for connection to the Internet. These receivers are intended to be used with video recording or r....
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....rough internet. The specific content requested by the user is received in return by the digital media receiver from the Amazon server. These signals are processed and converted into a form readable by a television. The processed signals are then transmitted to the connected television so that the requested media can be viewed by the user. I find that the HSN Explanatory notes issued by WCO (World Customs Organization) for CTH 8517 state that it excludes apparatus for the transmission or reception of radio-broadcasting or television signals. I also find that the Fire TV Stick does not receive signals from satellite/cable/terrestrial to convert them in the form suitable for display on television screen. 15.2 Comments received from the Commissionerate of Customs, Chennai-II have been reproduced in Para 10(c) of this ruling. They have suggested CTH 8517 62 90 as a correct classification for the applicant's product in their response to the application. It is brought to the notice by responding Commissionerate that the explanatory note issued by WCO (World Customs Organization) for CTH 8517 states that it excludes apparatus for the transmission or reception of radio-broadcasting or te....
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....vert them in the form suitable for display on television screen. Once connected to a WI-FI, it allows the user to access and view the movies, TV Shows etc. already available on Netflix, Amazon Video etc. The catalogue submitted by the applicant states that the product is connected to the display device following which it allows the user to access data available on Netflix, Amazon Instant Video, HBO Now and Hulu Plus etc. From a reading of the Tariff Heading and Explanatory Notes discussed above the functions performed by the product are similar to those described for CTH 8517, therefore Pr. Commissioner of Customs (III), (Import), Air Cargo Complex, Sahar, Andheri (East), Mumbai has concluded that the applicant's product should fall under this CTH 8517 62 90. 15.4 Commissioner of Customs (Nhava Sheva-V), Jawaharlal Nehru Customs House, Nhava Sheva had scrutinized on the basis of the submission made by the applicant regarding the product and have classified the product Fire TV stick under CTH 8517 62 90. 15.5 Two Jurisdictional Commissionerates have expressed divergent views on classification of Fire TV Stick. Pr. Commissionerate of Customs, ACC, Bengaluru has opined for the F....
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....all kinds (LCD, plasma, CRT, etc.) used in the home (television sets). Therefore, the reception apparatus for television in Heading 8528 are apparatus capable of receiving television broadcasts or devices like CCTVs or television sets themselves. On the scrutiny of the functionality of the fire stick viz-a-viz above note, it is evident that the device is designed for or capable of functions beyond or different from reception of the broadcast signal and conversion of the same into a signal for display. From technology perspective, it was brought on record by respondent Commissionerate that the Wi-Fi frequency range is based on IEEE 802.11 protocol and is different from that of a television signal or radio signal. 15.9 Sub-heading 8528 71/73 includes receivers for TV. The apparatuses mentioned in these entries are capable of receiving and converting the signal. On the other hand, as explained in the above para, the Fire TV Stick performs all three functions of reception, transmission and conversion. The six-digit entry, 8517 62, which includes 'Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing ap....