TaxTMI 
TaxTMI 
2023 (3) TMI 1615
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....of import namely, Electronic Display Device (E- Reader) (Kindle 11th Gen), Model No. C2V2L3. 3. The applicant has stated that, Kindle 11th Gen is an electronic book reader which allows a user to read e-books; Kindle 11th Gen simulate the experience of reading a physical book to a reader through a patented e-ink technology and e-ink display screen; readers can also purchase/download e-books, newspapers and magazines onto Kindle 11th Gen from the Amazon Kindle web store; following are the specifications of Kindle 11th Gen: Particulars Specifications Dimensions (mm) 109 x 158 mm Thickness (mm) 8.1mm Weight (g) 157g Display 6" E Ink Carta 1.2 Resolution 300ppi Front Light Yes (4 LEDs) Color-Adj. Front Light Night Reading Mode No Navigation/Touch Capacitive Touch CPU MTK MT8113 (Dual A53 @1GHz) Storage (eMCP/Discrete) 16GB RAM (Type) 512MB LPDDR4 Memory Expansion No Operating system Juno Battery Capacity 1040mAh Battery Life Up to 6 weeks WAN Option No Waterproof No Bluetooth Yes Wi-Fi Yes Charging USB-C Wireless charging No In the Box Kindle 11th ....
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....Tax), New Delhi had passed Ruling No. AAR/Cus/01/2015 dated 15.5.2015 on import of previous model of Kindle device; the Authority had held that the previous model of Kindle is appropriately classifiable under Sub-heading 8543 7099 as 'Others' under the heading 'Electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter' and the benefit of Notification No. 25/2005-Cus. is available on import of the same; on the limited issue of availability of Notification No. 25/2005-Cus., the department filed a writ petition before the Hon'ble High Court; the High Court's judgment reported as Union of India & Anr. vs. Amazon Seller Services Pvt. Ltd., 2018 (9) TMI 272 - Delhi High Court held that the benefit of Notification No. 25/2005-Cus. is not available; thereafter, the Hon'ble Supreme Court affirmed the judgment of Hon'ble High Court vide Final Order dated 1.2.2019 in SLP (C) No. 29/2019; it is important to note that the classification remains unchallenged and undisputed by the department before the Hon'ble High Court. The applicant has also stated that the specifications/ brochure shall be provided du....
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....tion; Dictionary function is ancillary to reading so as to enable a user to find out a word's meaning while reading; the internet connectivity enabling download of e-books is also for the ultimate function of reading those downloaded e-books. 7. The applicant has placed reliance on the case of Union of India & Anr. vs. Amazon Seller Services Pvt. Ltd., 2018 (9) TMI 272 - Delhi High Court (affirmed by the Hon'ble Supreme Court) wherein the Hon'ble' High Court while interpreting Notification No. 25/2005-Cus., has held, "30. In other words, our conclusion is that the exemption notification would apply where the device is an electrical machine covered under tariff item No.8543 89/8543 7099, and its primary and basic function should be to translate or perform dictionary function. Primary function of kindle device is to enable the user to read e-books. It is an e-book reading device and not a translator, and is not procured or purchased to perform dictionary function. No one purchases a kindle device because it is a translator or device "with" a dictionary function. E-book readers are purchased because a person wants to read e-books which are pre-loaded or can....
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....hapter 84 and certain instruments and apparatus of Chapter 90.'; for a product to be classified under CTH 8543, it should be (a) an electrical machine and apparatus, (b) which performs individual functions and (c) which is not specified or included elsewhere in Chapter 85; in the instant case, Kindle 11th Gen is an electrical machine; the scope of machine is very wide and hence, Kindle 11th Gen being an apparatus, is an electrical machine; individual function of Kindle 11th Gen is that it is used as an e-reader for 'reading e- books'; E-Readers by name are not covered elsewhere in any chapter under the Tariff Act; as Kindle 11th Gen, having the individual function of acting as an E-Reader for reading e-books, not specified anywhere else in the Tariff Act, thus, it would be classified under the residual entry under heading 8543 and Sub-heading 8543 70 99; this tariff classification (heading 8543) is supported by Ruling No. AAR/Cus/01/2015 dated 15.5.2015 passed by the Authority for Advance Ruling (Central Excise, Customs and Service Tax), New Delhi on import of previous model of Kindle device, BTI Ruling no. PLBTIWIT-2020-001068 (validity st....
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....ying the content in electronic format; the right classification of the subject goods should be under heading 8524. 10. Personal hearing, in the matter was held on 23.01.2023 wherein, advocate representing the applicant explained reasons for seeking advance ruling in the matter. He also gave background of the issue, in brief, mentioning that the issue of classification has already been decided in respect of similar product (different model) by the erstwhile AAR. He averred that the same should apply in the present case also. He further explained that in absence of any specific heading for classification of the goods in question, the same merit classification under heading 8543. The Authority enquired if there is any case related to the goods in question pending before any officer of Customs. The advocate replied that on the issue of classification no such issue is pending before any officer of Customs. However, a show cause notice had been issued related to admissibility of exemption notification and the same is under the process of adjudication. Lastly, he clarified that limited purpose for seeking ruling vide the current application is to have certainty in the matter of classif....
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....ther or not fitted with electrical connections or attached with polarizing plates. (2) Flat panel display modules with drivers or control circuits: Drivers or control units are added to 'cells' of item (1). The modules may contain drivers that receive video signals or other data (e.g., text, images, ADP signals, or other graphical data) and switch individual pixels of displays (generally consisting of driver IC and PCB that connects video signals to driver IC) or control circuits of power supply for display modules or timing control. They might combine with backlight units (for LCDs) or frames (chassis). (3) Flat panel display modules with touch-sensitive screens: Touch-sensitive screens are attached to the flat panel display modules or embedded in the cell. They allow input as well as output (display) of information such as images. The articles of this heading are designed to be attached to or incorporated in a wide range of apparatus (e.g., refrigerators, automatic data processing machines, mobile phones and devices for transmission or reception of images or data, digital cameras and video camera recorders, monitors and reception apparatus for t....
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....se, subject goods are not merely display modules to be incorporated in finished goods, but are finished goods themselves, i.e., E-readers; moreover, the amendments proposed to heading 8524 vide the Finance Bill, 2023 [Serial No. 25(ii) of the Fourth Schedule read with Clause 126(c)] makes it amply clear that heading 8524 covers only flat panel display modules of various finished products, but not such finished goods. In view of the above, the applicant submits that subject goods are appropriately classifiable under heading 8543 and not under heading 8524 as suggested by the concerned Commissioner. 11.5 While filing their response on the comments of the concerned Commissioner, the applicant has also requested for another personal hearing to make their submissions. 12. Next personal hearing took place on 02.03.2023. Advocate appearing for the applicants mentioned that while giving comments on the application for advance ruling, the concerned Commissionerate in his observations has not referred to the Chapter Notes, HSN Explanatory Notes; the proposed heading 8524 is not about finished goods but incomplete product as per the HSN. Finance Bill, 2023 makes it amply clear that head....
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....nly for the purpose of downloading the e-books onto the device and other ancillary functions such as sharing contents via social networking websites; reader can also do limited internet browsing to visit specific websites like Amazon.com, Wikipedia, and websites to sign up for Kindle 11th Gen unlimited; the dictionary is stored in the device and there is no requirement to connect to the internet for accessing the dictionary. 16. Further, I have also observed that erstwhile AAR has issued Ruling No. AAR/Cus/01/2015 dated 15.5.2015 on import of previous model of Kindle device; the Authority had held that the previous model of Kindle is appropriately classifiable under Sub-heading 8543 7099. Further, on the limited issue of availability of Notification No. 25/2005-Cus., the department filed a writ petition before the Hon'ble High Court; the High Court's judgment reported as Union of India & Anr. vs. Amazon Seller Services Pvt. Ltd., 2018 (9) TMI 272 - Delhi High Court held that the benefit of Notification No. 25/2005-Cus. is not available; thereafter, the Hon'ble Supreme Court affirmed the judgment of Hon'ble High Court. Thus, issue of classification and applicabili....