TaxTMI 
TaxTMI 
2023 (12) TMI 447
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....llant M/s. Xiaomi Technology India Private Limited imported Mi Web Camera classifying the same under Chapter Heading 8473 3099 as parts and accessories of Automatic Data Processing (ADP) Machines. The original authority and the Commissioner (Appeals) in the impugned order classified the said products under Chapter heading 8525 8010 in view of the fact that the web camera imported by the appellant was standalone item unlike in other cases where the web camera was imported along with the ADP machine. 2. The learned counsel submitted that the Mi Web Camera consists of camera lens, a USB plug to connect exclusively to an ADP machine as a plug and play and a clamping slot. The web camera is solely and principally used with the ADP machine and c....
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....ttention to Chapter Note 5(E) to state that machines incorporating or working in conjunction with ADP machine and performing a specific function are to be classified in the Heading appropriate to their function or failing that, in residual Headings. Since the web camera can work only in connection with ADP machine and does not have any specific function, it is rightly classifiable under Chapter Heding 8473. Reliance is also placed on the HSN explanatory Note 5 (C) to chapter 84 wherein it is stated that the unit is regarded as being part of an Automatic Data Processing (ADP) system if it meets the conditions mentioned therein. Since the said item meets the conditions, they are rightly classifiable under Chapter Heading 8473. 3. It is furth....
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....25. 4. On behalf of the Revenue, the learned Authorised Representative submitted that as per Notes 5 (C ) and 5 (D) to Chapter 84 which reads as under: (C ) subject to paragraphs (D) and (E) a unit is to be regarded as being part of an automatic data processing system if it meets the following conditions: (i) if it is of a kind solely or principally used in an automatic data processing system; (ii) it is connectable to the central processing unit either directly or through one or more other units and; (iii) it is able to accept or deliver data in a form (codes or signals) which can be used by the system separately presented units of an automatic data processing machine are to be classified in heading 8471. However, keyboards, X-Y....
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.... CESTAT-Bangalore and this order of CESTAT has been upheld by the Supreme Court of India and therefore to this extent, the customs classification of web camera is no longer res-integra. However, it is to be noted that in the said judgement the web camera had been imported along with an ADP machine and not separately as has been done by the importer in the instant case, and therefore there is a critical and crucial distinction, which has a bearing on the customs classification thereof". 7. The Tribunal in the case Hi-Tech Computers vs. Commissioner of Customs vide Final Order Nos. 1462-1464/2004 dated 3-9-2004 in Appeal Nos. C/26, 62/2003 and 188/2001 reported at 2005 (180) E.L.T. 356 (Tri. - Bang.). The facts before the Tribunal as seen fr....
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....Cameras" and sub-heading 8525.40 referred to "Still image video camera and other video camera recorders"....... 6. ............ 7. ............ 8. ...........Thus, it is observed that the web camera imported by the appellant is not an ordinary camera and does not function independently. The image can be captured only when it is connected with the computer. Thus, from the above, it can be seen that the product imported by the appellants is not an ordinary camera and therefore will not fall under chapter 90 as held by the lower authority. The proper classification will be under chapter 84.73 or 84.71. Besides, a perusal of the aforesaid judgment of the Hon'ble Tribunal also clearly indicates that all those items which come along wit....