2015 (7) TMI 818 - AAR - Customs

Classification of goods - Classification of Kindle device - Notification No. 25/2005-Cus. Dated 01.03.2005 - Classification under entry 8543 70 99 or under entry 8528 59 00 - Held that -The main entry 8528 is in respect of the monitors, projectors and the television sets that is clearly not the case here. The specific entry relied upon by the Customs is 8521 which pertains to video recording or reproducing apparatus, whether or not incorporating video tuner. This is clearly not applicable for the simple reason that Kindle device is not meant for video recording or reproducing anything. The other related entry under this heading pertains to video recorders beta cam or beta cam SP or digital beta cam S-VHS or digital S etc. That is clearly not the proper description of Kindle device. The third entry relied upon by the Customs Department is under the heading 9504 which pertains to video game consoles and machines, articles for funfair table or parlor games, including printables, billiards, special tables for casino games and automatic bowling alley equipment. From the very nature of the description, the Kindle Device will not be a part of toys, games and sports equipments; parts and accessories thereof which is to be covered under the heading 9504. Kindle Device will be covered under entry 85437099 being an electrical machine with translation or dictionary functions. Therefore, this late objection raised by the Revenue is rejected. We have seen the some import details. All these imports have been under the entry 85437099 and accepted by Customs. Of course, these imports were not made by the applicant but that is irrelevant once the Customs Departments accepts the same to be covered by 85437099. - Benefit of notification granted - Decided in favour of assessee.

Summary

Issues:
Classification of Kindle Device under Tariff Item 8543 70 99 for customs duty exemption.

Analysis:
The applicant imported the Kindle Device and claimed it to be an electrical device under Tariff Item 8543 70 99 for a customs duty exemption. The Revenue opposed, arguing that the device lacked translation or dictionary functions as its main feature, a requirement for the Notification No. 25/2005-Cus. The court rejected this contention, emphasizing that the plain meaning of the Tariff entry must be given, and no such specific feature requirement was mentioned in the Notification. Thus, the Kindle Device qualifies for the exemption under Tariff Item 8543 70 99.

At a later stage, the Revenue raised doubts about the device's classification under Tariff entry 8543 70 99. Interestingly, different Commissionerates had conflicting opinions on the matter. While Chennai Air Cargo and Mumbai Air Cargo agreed on the classification, the Chennai seaport-import Commissionerate suggested other entries like 8528 59 00, 8521, and 9504 90. However, the Delhi Commissionerate's defense of entry 8471 was deemed irrelevant as the applicant consistently claimed benefits under entry 8543 70 99.

Despite the initial closure of the Tariff entry issue, the Revenue's late objection led to a detailed analysis of alternative entries. The court examined entry 8528 59 00 for monitors and projectors, concluding it did not apply to the Kindle Device. Entry 8521 for video recording or reproducing apparatus was also deemed inapplicable as the Kindle was not intended for such purposes. Entry 9504 for video game consoles and machines was dismissed as the Kindle Device served an educational purpose, not entertainment, and did not fall under the category of games. Ultimately, the court upheld the classification of the Kindle Device under Tariff entry 8543 70 99, granting it the customs duty exemption under Notification No. 25/2005-Cus.