TaxTMI 
TaxTMI 
2025 (12) TMI 1627
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....submitted an advance ruling application dated 14.11.2024 filed on 18.11.2024 regarding renewal of advance ruling dated 18.03.2016 in relation to 'Apple watch- and -Apple watch bands (leather and non-leather}". Vide Advance Ruling No. CAAR/ Mum/ ARC/ 212, 213/ 2024- 25 dated 10.03.2025 in the matter of Apple India Private Limited, CAAR, Mumbai has ruled the following: For Apple Watch: Confirmed classification as contended by the applicant under CTH 8517 6290 based on merit. For Apple Watch Bands (leather and non-leather): Not adjudicated the Company's Application on the point of classification of 'non-leather Apple Watch Bands' and 'leather Apple Watch Bands' on the basis that the -matter is currently pending before the adjudicating authority in applicant's matter. 2.2 The reasoning provided by CAAR, Mumbai in the above ruling was that a Show Cause Notice No. dated 27.12.2024 ('the SCN dated 27.12.2024') was issued by the Additional Commissioner of Customs, Appraising Group 5A & 5G, Air Cargo Complex {ACC), Mumbai after filing of the advance ruling application on 18.11.2024 by the Company (the Company was in receipt of the SCN....
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....ure and cannot be used anywhere else. The Apple Watch Bands have a unique and custom design integrated lug that will only fit the customized groove on the Apple Watch to be accessible by the user. 2.4.2 Further. most of the features of the Apple Watch can only be utilized once the Apple Watch is connected to the wrist of the user through the Apple Watch Bands. Some of such functionalities of Apple Watch which are only accessible to the user once the Apple Watch is affixed to the wrist through Apple Watch Bands are - tracking calories, steps taken, and distance travelled, heart rate sensor, notification alerts through haptics, activation of watch display on lifting of wrist. etc. 2.4.3 To this extent, Apple Watch Bands are essential for the functionality of Apple Watch and do deliver a complete user experience to the user. Hence, it amounts to part of the Apple Watch. In this regard, reliance is placed on the settled principal of law that part is construed to be an essential component of the whole without which the whole cannot function CCE. Delhi Vs. Insulation Electrical {P) Ltd,, 2008 (224) E.L.T. 512 (S.C.}]. 3. Applicant's interpretation of the Laws/Facts: 3.1 C....
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.... Excise. Customs and Service Tax}. New Delhi had accepted the contentions of the Company on merits in relation to the classification of bands as parts of the device. i.e. Apple Watch under CTH 8517 70 90 vide Advance Ruling 2016 read with corrigendum dated April 06, 2016. 3.4 Apple Watch Bands do not merit classification under CTH 9113 2010. CTH 9113 covers - Watch Straps. Watch Bands and Watch Bracelets and parts thereof. Note 1 to Chapter 91 provides list of articles which are excluded from the scope of Chapter 91 Note 1 (g) to Chapter 91 excludes "articles of Chapter 85, not yet assembled together or with other components inte watch or clock movements or into articles suitable for use solely or principally as parts of such movements (Chapter 85}." As already discussed above, Apple Watch Band is an essential component of Apple Watch which are imported on standalone basis i.e .. it is not assembled with other components into Apple Watch and are rightly classifiable under Chapter 85, Hence, in view of Note 1(g) to Chapter 91 Apple Watch Bands are excluded from the scope of Chapter 91 and cannot be classified thereunder, Additionally. the HSN Explanatory Notes to CTH 9113 p....
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.... so, and since as detailed in the foregoing submissions. the specific heading for Apple Watch Bands is under CTH 8517 (as parts of smartwatches). the same is anyway also excluded from classification under CTH 9113 by virtue of exclusion under the HSN Explanatory notes to CTH 9113. Therefore, it is submitted that where the goods satisfy the requirements of a specific entry, that entry should cover the goods rather than the residual heading. In view of GRI 3(a) and the judicial precedents cited above, where there is a specific heading for the Apple Watch Bands i.e., as part of Apple Watch falling under CTH 8517 of Chapter 85, it will not merit classification in the general entry of 9113, where watch straps which are used merely for fastening the watch to the wrist and/ or for decorative purposes, as per the HSN explanatory notes to CTH 9113. 3.6 CLASSIFICATION OF APPLE WATCH BANDS MADE OF LEATHER UNDER CTH 4205 00 90 The applicant's contention regarding classification of apple watch bands made of leather under cth 4205 00 90 has already been mentioned in the application dated 14.11.2025 filed on 18.11.2025 and the same has been taken on record while passing the advance ruli....
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....his Chapter does not cover: (g) Articles of Chapter 85, not yet assembled together or with other components into watch or clock movements or into articles suitable for use solely or principally as parts of such movements (Chapter 85). It was further mentioned that the Explanatory Note to Heading 9113 clarifies that the Heading covers watch straps, watch bands and watch bracelets and all devices for fastening watches to the wrist. Furthermore, they may be of any material and may provide decorative character. The Heading also includes parts of watch straps, bands and bracelets. It was further submitted that the bands that fasten the watch to the user's wrist, composed of various materials that can provide decorative character and do not perform the function of a watch or do not assist the watch in any way in performing the functions of watch, appears to be classifiable under Tariff Heading 9113. 4.3 In regards to parts of Apple Watch, namely bands made of leather ("leather bands"), it was submitted that the same appears to be classifiable under CTH 9113 in view of the submissions made above. Further, vide letter dated 14.01.2025, additional submissions were made by the conc....
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.... Bands were declared under the Tariff Heading 9113, whereas only in case of six Bills of Entry (including three B/Es of the applicant), Watch Bands were declared under Tariff Heading 8517. Details of Hearing 5.1 In continuation of hearing dated 10.03.2025 and subsequent ruling passed, another hearing was held on 25.11.2025 at 11.30 AM. Shri Anurag Sehgal and Shri Gautam Khattar appeared for PH in the matter on behalf of the applicant. This hearing is being taken due to the remand order by Hon'ble High Court of Bombay arising out of disposal of W.P. filed by the applicant. That in this application matter pertains to classification of wrist bands of apple watch: a) Non-leather bands b) Leather bands The issue before Hon'ble Bombay High Court pertaining to CAAR unit was whether the CAAR decline the passing of the ruling when a similar matter is pending adjudication before a department authority in a subsequent investigation and when the validity of the earlier ruling by CAAR is still in operation i.e. till March, 2025 or otherwise. It is discussed with the applicants/ representative that there is no provision of renewing of ruling only a fresh con....
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....functionalities of Apple Watch which are only accessible to the user once the Apple Watch is affixed to the wrist through Apple Watch Bands are tracking calories, steps taken, and distance travelled, heart rate sensor, notification alerts through haptics, activation of watch display on lifting of wrist, etc. Hence, both leather and non-leather bands aid in achieving the full functionality of Apple watch bands. Therefore, the only difference between the leather and non-leather bands is in the material used in these watch bands. Leather bands as the name suggests is made of leather. Non-leather bands may be made up of fluoroelastomer or stainless steel or any other material other than of leather. 2. Some samples/photographs of the both kind of bands i.e. leather and non-leather bands: The applicant has submitted the following photographs of both type watch bands- 3. Comment in a similar smart watch band classification issue in which recently CAAR, Delhi has taken view that smart watch bands are classifiable under CTH 9113: The Company understand that the Customs Authority of Advance Ruling, New Delhi has given a Ruling No. CAAR/Del/Samsung India/70....
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....hes." It is clear from the above, to install the Samsung watch bands spring bar pins are required to be inserted strap ends and aligned with the watch lugs. Thereafter the spring bar is to be compressed to securely click into the lug holes. This allows quick installation and easy interchangeability across Galaxy Watches and other compatible generic wrist watches. In contrast, Apple Watch bands use a mechanism with a unique integrated lug that fits only into the customized groove of the Apple Watch. This design makes Apple bands non-interchangeable with other watches and emphasizes exclusivity, as they cannot be used outside the Apple ecosystem. Furthermore, in the Samsung CAAR, the Applicant while supporting its contention that the Samsung watch bands are within the scope of Explanatory Notes to CTH 9113 also mentions that since such watch bands are compatible with both Galaxy smart watches and general wrist watches, it is classified under CTH 9113 as watch straps or bands in the conventional sense. The relevant extract of the same is reproduced hereunder "1.11.6. The Explanatory Notes to CTH 9113 provide authoritative guidance on the scope and interpreta....
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.... defined for use with Apple watch bands and therefore should be classified as its parts. The non-leather bands by virtue of Note 2(b) to Section XVI is appropriately classifiable under CTH 8517 79 90. The leather bands though being excluded from the purview of Chapter 85 by virtue of Note 1 to Section XVI is appropriately classifiable under CTH 4205 00 90. Discussion and findings 6.1 I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 6.2 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act. 6.3 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapters are provided for case of reference o....
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.... with an iPhone as the full functionality of the device requires an active connection to an iPhone The device functions as an extension of the iPhone, providing various features that enhance user interaction. When connected, it allows access to information stored on the iPhone through a "glances" feature, which enables the rapid display of relevant data, such as calendar events, weather updates, and messages, on a compact interface. Additionally, the Smart Reply function integrates the device into a wireless network, facilitating the transmission and reception of data, voice, and images. This allows users to respond to messages directed to the iPhone by composing text messages using frequently utilized options, dictating messages, or employing emojis for communication. The device supports hands-free communication by utilizing its built-in speaker and microphone for brief conversations when paired with the iPhone. Users can seamlessly transfer calls to a car speaker or Bluetooth headset for added convenience. The device also features an alert notification system designed for wrist attachment, which delivers notifications to the user through gentle taps, signaling incoming mess....
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....ting optimal functionality and enhancing the overall user experience. The bands of the device are made up of fluoroelastomer or stainless steel or leather or of any other material. Therefore, it can be stated that watch bands are basically used for securing the watch onto wrist of user. Bands are provided only for fastening; they do not perform any other functions. 7. Classification of apple watch bands: 7.1 Classification of goods covered under the Tariff Act is done as per the GIR of the First Schedule of Tariff Act. GIR 1 to 5 lays down the principles for determining classification of goods under a specific Heading whereas GIR 6 is applicable if the objective is to determine the classification of goods in the Sub-headings of a Heading. 7.2 GIR 1 stipulates that the goods under consideration should be classified in accordance with the terms of the Headings and any relevant Section or Chapter notes. These Section or Chapter notes and sub-notes give detailed explanation as to the scope and ambit of the respective Sections and Chapters. These notes have been given statutory backing and have been incorporated at the beginning of each Section / Chapter. For ready reference, R....
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....plete without the product or if the other cannot function without it. The complexity or lack of complexity will not be a detriment to the question of identifiable nature of the part. In the present case, both kinds of the apple watch band (leather and non-leather) are used only for securing the apple watch onto user's wrist. Apple watch is finished/complete goods in itself and absence of apple watch band will not make it disable as it can still works as transmission apparatus of heading 8517. Further, the applicant has submitted that some of functionality of Apple Watch which are only accessible to the user once the apple watch is affixed to the wrist through Apple Watch Bands are tracking calories, steps taken, and distance travelled, heart rate sensor, notification alerts through haptics, activation of watch display on lifting of wrist, etc. . It is observed from the submissions of the applicant that bands (leather and nonn- leather) secure the watch onto user's wrist but as far as claim of enabling the function capabilities for example; tracking activities, measuring heartbeat, providing alert through haptics, the applicant has failed to explain that how both ki....
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....does not impose bearing on the classification of watch bands or watch straps irrespective of its constituent material. 7.5 The tariff heading 9113 under the First Schedule of the Customs Tariff Act, 1975, reads as sunder: 9113 WATCH STRAPS, WATCH BANDS AND WATCH BRACELETS, AND PARTS THEREOF 9113 10 00 - Of precious metal or of metal clad with precious metal 9113 20 - Of base metal, whether or not gold- or silver-plated: 9113 20 10 --- Parts 9113 20 90 --- Other 9113 90 - Other 9113 90 10 --- Parts 9113 90 90 --- Other Further, the relevant explanatory notes of heading 9113, as issued by the World Customs Organisation (WCO), are reproduced below for reference and analytical consideration: This heading covers all kinds of watch straps, watch bands and watch bracelets, i.e., all devices for fastening watches to the wrist. Watch straps, watch bands and watch bracelets may be of any material, for example, base metal, precious metal, leather, plastics or textile material. They may also be clearly decorative in character without this affecting their classification. The heading also includes parts of watch straps, watch bands and watch bracel....
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....sh (2004 (178) E.L.T. 3 (S.C.): 4. In a taxing statute word which are not technical expressions or words of art, but are words of everyday use, must be understood and given a meaning, not in their technical or scientific sense, but in a sense as understood in common parlance i.e. "that sense which people conversant with the subject-matter with which the statute is dealing, would attribute to it". Such words must be understood in their 'popular sense'. The particular terms used by the legislature in the denomination of articles are to be understood according to the common, commercial understanding of those terms used and not in their scientific and technical sense "for the legislature does not suppose our merchants to be naturalists or geologists or botanists". In the case of Commissioner of Central Excise, Delhi-III Versus Uni Products India Ltd. 2020 (372) E.L.T. 465 (S.C.), the Hon'ble Supreme Court observed that in cases where an item is capable of being classified under two headings, common parlance test is the best way out. 7.7 In this case, from the photographs provided by the applicant and the website of Apple i.e. https://www.apple.com/in/sh....