TaxTMI 
TaxTMI 
2025 (12) TMI 1261
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....ant filed a Bill of Entry No. 6929150 dated 03.01.2022 importing a consignment of six different types of 'Newland NLS Handheld Barcode Scanners' classifying them under CTH 8471 6050. The exemption from Basic Customs Duty was claimed, as it was not payable on import of goods falling under CTH 84716050. The goods were covered under Master Airway Bill No. 8281493760 dated 02.01.2022 having various consignments importing different models of aforesaid NLS Handheld Scanners. The adjudicating authority, however assessed the consignment of scanner bearing No. MT9052-GL and MT-9055- GL and alleged that the imported goods are classifiable under CTH 85171300. The authorized CHA of the appellant viz. M/s Aeroship Logicare Pvt. Ltd. vide letter dated 10.01.2022 had requested for waiver of show cause notice and personal hearing. After seeking reply to certain queries raised by the assessing officer and in view of the said request of waiver that the assessment order bearing No. 143 dated 24.01.2022 was passed holding that the imported goods are not the scanners classifiable under CTH 84716050 but are telephones for cellular network/mobile phones rightly classifiable under 85171300. The goods of t....
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....merely ancillary to the function of scanning. The product was rightly classified as scanner under CTH 8471 60 50. 4.2 Learned counsel has relied upon the following decisions: (i) Bloomberg Data Services (India) Pvt. Ltd. [2005 (179) ELT 146]; (ii) Xiaomi Technology India Pvt. Ltd. [2019 (21) GSTL 333]; (iii) M/s Brightpoint India Pvt. Ltd. [CAAR/CUS/APPL/21/2022] 4.3 Learned counsel finally has impressed upon the principle of trade parlance test or consumer perception test. It is submitted that the product in question is traded in the market for their scanning functionality and not for receiving calls or to access data over internet. The buyers of the imported goods are warehouse keepers, logistic players, inventory management, client etc. Hence trade also recognizes the product as scanner and not as mobile phone. The product is wrongly held to be a smart phone/mobile phone under 84171300. Following decisions have been relied upon: (i) PMP Auto Industries Ltd. Vs. Union of India [1987 (31) ELT 369 (Bom.)]; (ii) Samsung India Electronics Pvt. Ltd. [2016 (340) ELT 430]; (iii) Union of India Vs. JMA Industries [1995 (77) ELT ....
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....east a central processing unit, a keyboard and a display; 8471 30 90 Other automatic data processing machine 8471 60 50 Scanners 6.2 The relevant extract of Heading 8517 as alleged by the department is as below: 8517 TELEPHONE SETS, INCLUDING TELEPHONES FOR CELLULAR NETWORKS OR FOR OTHER WIRELESS NETWORKS; OTHER APPARATUS FOR THE TRANSMISSION OR RECEPTION OF VOICE, IMAGES OR OTHER DATA, INCLUDING APPARATUS FOR COMMUNICATION IN A WIRED OR WIRELESS NETWORK (SUCH AS A LOCAL ORWIDE AREA NETWORK), OTHER THAN TRANSMISSION OR RECEPTION APPARATUS OF HEADING 8443, 8525, 8527 OR 8528 8517 13 00 Smartphone Definition of smartphone as per Note 5 to Chapter 85 is as below: "For the purposes of heading 85 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'. HSN Explanatory notes for Heading 8517 on Page No XVI-8517-1 stat....
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....king in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. The perusal makes it clear that if the specific function of a machine is as mentioned in note 6(A) of CTH 8471, the machine shall be the ADP. 6.5 In circular No. 20/2013-Cus. dated 14.05.2013, clarification has been given by the Board regarding the classification of "tablet computers" under heading 8471 stating that; "The mobile phone calling function could be provided by the products only as a supplementary function because it could not be activated without running an operating system of the devices. These devices are not intended to be a substitute for a mobile phone to make voice calls, but, according to its main technical features is designed as a substitute for laptops". 6.6 It has been clarified in the Circular that: "The classification is to be determined by application of the General Rules for the Interpretation (GRIs) of the First Schedule to the Customs Tariff Act (CTA), 1975. GRI 1 requires that, "in classifying artic....