2021 (8) TMI 1331 - AAR - Customs

Classification of 11 Echo devices - Echo Flex, Echo Auto, Echo Link and Echo Link-Amp - to be classifiable under sub-heading 8517 62 90, or not - four products namely, Echo 4th Generation, Echo Dot 4th Generation, Echo Dot 4th Generation with Clock and Echo Studio classificable under sub-heading 8518 22 00 or not - products namely Echo Show 5, Echo Show 8 and Echo Show 10 classibiable under sub-heading 8528 59 00 or not - HELD THAT - Regulation 21 of CAAR Regulations empowers this Authority to modify its orders or rulings in the event that the same was pronounced under mistake of law or fact. This power is only to modify the ruling and is evidently not a power to review its own ruling. The provisions of Chapter V-B of the Customs Act do not provide for powers of review, even as appeals provisions are duly included. In the instant case, the advance ruling pronounced by this Authority on the question of classification of Echo devices was neither under a mistake of law nor of fact. It is a ruling pronounced after due consideration of facts and law. Under the circumstances, provisions of Regulation 21 of CAAR Regulations, 2021 cannot be invoked in the instant case. Petition dismissed.

Summary

Issues: Classification of Echo devices under Customs Tariff sub-headings 8517 62 90, 8518 22 00, and 8528 59 00; Interpretation of Regulation 21 of Customs Authority for Advance Rulings Regulations, 2021 for modification of advance rulings.

In the judgment delivered by the Authority for Advance Rulings of Customs, the issue at hand was the modification petition filed regarding the classification of Echo devices under different sub-headings of the Customs Tariff. The original ruling classified various Echo devices under sub-headings 8517 62 90, 8518 22 00, and 8528 59 00. The applicant sought modification based on the classification of a similar product by the Customs Authority for Advance Rulings, Mumbai, and an order by HM Revenue and Customs. However, it was noted that these were not submitted during the original ruling. The applicant argued for a liberal interpretation of Regulation 21 of the Customs Authority for Advance Rulings Regulations, 2021, citing the HMRC proceedings.

The Authority emphasized that the original ruling was issued following due procedure, providing specific reasons for the classification based on the principal determining feature, guided by the product description on the Amazon website. The judgment highlighted that the Authority is governed by Section 28M(1) of the Customs Act, which mandates following prescribed procedures. Regulation 21 allows for modification of orders if pronounced under a mistake of law or fact, but not for a review of its own ruling. In this case, it was found that the original ruling was not under a mistake of law or fact, and thus, the provisions of Regulation 21 could not be invoked for modification.

Ultimately, the modification petition was dismissed by the Authority, emphasizing that the original ruling was not made under a mistake of law or fact, and therefore, did not warrant modification under Regulation 21 of the Customs Authority for Advance Rulings Regulations, 2021.