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TMI Blog2016 (2) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondent : Shri Amresh Jain (AR) RULING M/s Samsung India Electronics Private Ltd. (hereinafter also referred to as applicant) is a private limited company registered in India under Companies Act, 1956. Applicant proposes to launch a new mobile phone by the name of Galaxy K Zoom under the Galaxy series. Applicant proposes to import the said product for reselling to the distributors, retailers and the individual customers. The product is powered by Android Kit-Kat operating system and a quad 1.3GHz processor along with the dual-core 1.7GHz processor. It has a 4.8 HD SAMOLED (Pentile) touch screen. It comes with 2 GB RAM, 8GB in built memory, and has external memory of up-to 64GB. It has a support system for micro SD cards. Most of the specifications of the hardware and the software installed in the product, matches with the other mobile phones of the Galaxy series. However, one of the distinguishing features of this product from its predecessor in the Galaxy series is the quality of its camera. It is equipped with a 20.7MP BSI CMOS having 10x Zoom, w/Flash. Other important feature of the product is its In-Call feature. This allows the user of the product to cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponents, the component which gives the essential character to the goods is the determining factor. Therefore, in order to correctly classify the product to the imported, one will have to rely upon the test of essential Character. It is important to consider the features of the product to identify the essential character of the product. It is a device from which user can make calls, can receive calls, send and receive messages, play music video, music player or radio, record video, can do arithmetic calculations, receive and send mails, can get directions vide navigation, can take photographs and upload them instantly etc. 5. Applicant further submits that they had approached the Customs Valuation and Classification Institute, Korea Customs Service for classifying Galaxy S4 Zoom which is the predecessor of the product. The said Institute on the basis of the structure, functions and price ratio of the product has provided that the product is classifiable as tariff item number 8517 12 9010 i.e. under the category of cordless phone. The applicant also imported S4 Zoom in the USA, where the US Customs and Border Protection has classified the product under H.S.Number 8517120050. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... best shot of the current environment. This mode is suitable for general users, as the device controls most settings and the catalogue also mentions that it captures the moments a user does not want to miss using various shooting modes. This equipment also has the capabilities to customize the options that affect the photography according to the environment where the photo is taken. This mode is suitable for advanced users, as the users are required to adjust the settings manually. The zoom is controlled by a ring around the barrel, which can also be set to control different functions or bring up menus. Twist it during a phone call and it will allow to snap a shot and instantly sends it via MMS. The Mobile Phone available in the market does have a zoom facility in the camera but this is a digital zoom not the optical zoom. 8. Revenue further submits that the applicant had imported Galaxy S4 Zoom, which is predecessor model to Galaxy K Zoom proposed to imported; that the Department vide adjudication order classified Galaxy S4 Zoom under CTH 8525 8020, as digital camera. Revenue further submits that the product Galaxy K Zoom proposed to be imported by the applicant is to be classif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8517 11 90 --- Other 8517 12 -- Telephones for cellular networks or for other wireless networks 8517 12 10 --- Push button type 8517 12 90 --- Other 8525 Transmission Apparatus for Radio - Broadcasting or television, whether or not incorporation reception apparatus or sound recording or reproducing apparatus; Television Cameras, Digital Cameras and Video Camera Recorders 8525 80 - Television cameras, digital cameras and video camera recorders: 8525 80 10 --- Television Cameras u 10% - 8525 80 20 --- Digital Cameras u 10% - 8525 80 30 --- video camera recorders u 10%- 8525 80 90 - Other 11. Relevant part of HSN Explanatory Notes appended to the Tariff Heading 8517 and 8525 are as under; 85.17 (i) TELEPHONESETS, INCLUDING TELEPHONESFOR CELLULAR NETWORKSOR FOR OTHER WIRELESS NETWORKS (B) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. 14. Further, applicant has also relied upon Rule 3(b) of GRI, which inter-alia states that in case of classification of composite goods consisting of different components, which gives the essential character to the goods, is the determining factor. 15. In view of above legal position, we are required to ascertain whether the product Galaxy K Zoom has the primary function and essential character of a mobile phone. It is noticed that the mobile phone is essentially a communication device working on the basis of towers and base stations arranged into a network of cells, which send and receive radio signals for cellular/mobile phone for communication. Further, such cellular/mobile phone will remain telephony. To classify the subject product as camera, on the basis that it has higher Megapixel of 20; optical zoom instead of digital zoom and has the capability to click picture and send them via multimedia message while on call, in our view is not correct, as such additions are related to the phone and not to the cam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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