2024 (3) TMI 191 - AAR - Customs

Request for modification of Advance Ruling - C lassification of goods proposed to be imported - Echo Dot (5lh Generation) Model No. C2N6L4 - Echo Dot (5th Generation) with clock Model No. C4E8S3 - HELD THAT - It is pertinent to mention that the said advance ruling has been issued by the Authority following the due procedure. It is a speaking order providing specific reasons for classifying the goods in question and answering the question regarding applicability of exemption notifications. The said regulation 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, 1962 do not provide for powers of review, even as appeal provisions are duly included. I also find that in the instant application, the advance ruling pronounced by this Authority on the question of classification of Echo Dot (5th Gen) and Echo Dot (5th Gen) with clock 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. The modification petition dated 16-8-2023 is, therefore, dismissed.

Summary

Issues involved: Modification of Advance Ruling on classification of goods and applicability of exemption notifications.

Classification of Goods:
The Advance Ruling Authority considered the classification of Echo Dot (5th Generation) and Echo Dot (5th Generation) with clock under sub-heading 8518 22 10 of the Customs Tariff Act, 1975. It was held that the goods are classified as hearable devices, and exemption under certain notifications was deemed inapplicable based on this classification.

Applicability of Exemption Notifications:
The applicant sought modification of the ruling, arguing that the concessional rate benefit under a specific notification was wrongly disallowed. They contended that the goods should qualify as 'hearable devices' to be eligible for the concessional rate of duty, meeting conditions such as being a portable speaker with battery power and bluetooth connectivity. The applicant claimed that the ruling failed to consider these essential criteria.

The Authority emphasized that the original ruling was issued following due procedure, providing specific reasons for the classification and addressing the applicability of exemption notifications. The Authority, established under Chapter V-B of the Customs Act, 1962, is mandated to follow prescribed procedures, as outlined in Customs Authority for Advance Rulings Regulations, 2021.

The Authority clarified that while it has the power to modify its orders if pronounced under a mistake of law or fact, it does not possess the authority to review its own rulings. In this case, it was determined that the original ruling on the classification of the goods was not erroneous in terms of law or fact, and therefore, the provisions of Regulation 21 of CAAR Regulations, 2021 were deemed inapplicable.

Ultimately, the modification petition seeking to alter the Advance Ruling was dismissed by the Authority, as it was found that the original ruling was made after due consideration of facts and law, and did not warrant modification under the circumstances.