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TMI Blog2021 (8) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... ce through AirPlay 2. The primary mode of interacting with the device is voice commands, though it is possible to play, pause and raise volume by tapping the top of the device. The home automation functions of the device to control a wide range of accessories is carried out via a hardware certification platfonn and a database system that makes possible integrate, configure, and communicate between a wide variety of products. The control of such devices is also done through Siri via voice commands. The product in question answers to the description of six-digit entry 851762 which is meant for Machines for reception, conversion and transmission or regeneration of voice, images, other data, including switching and routing apparatus and more specifically under the residuary sub-heading 85176290 - thus, Apple HomePods merit classification under sub-heading 85176290 of the first schedule to the Customs Tariff Act, 1975. - Ruling CAAR/Mum/ARC/14/2021 In Application No. CAAR/Mum/ARC/14/2021 - - - Dated:- 10-6-2021 - M.R. MOHANTY, CUSTOMS AUTHORITY FOR ADVANCE RULINGS, MUMBAI Present for the application : Sri Kanchun Kaushal, CA; Sh. Ravi Sharma, Advocate; Sh. Manmohan Mund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Complex was of the view that the product merits classification under sub-heading 85176290, concurring with the view of the applicant. The same view was also reiterated by the Delhi and Mumbai Air Cargo Commissioners. No comments were received from Kolkata Commissioner. The comments from the commissionerates were conveyed to the applicant and their rebuttal in respect of the comments from Chennai is also on record. Subsequently, the Commissioner, Chennai VII has reconsidered their earlier stand and concurred with the applicant s as well as views of the concerned Principal Commissioners/Commissioners of New Delhi, Mumbai and Bangalore that Apple Home Pods merit classification under sub-heading 87176290 of the tariff. After the filing of the application dated 01.04.2021, all the aforementioned commissioners of customs were requested to communicate their comments or re-affirm their earlier position, as may be convenient. Replies have been received from New Delhi and Mumbai, reiterating the earlier position. Mumbai Air Cargo, in addition, as also enclosed a copy of the Bill of Entry No. 9504350, dated 03.01.2019 vide which Home Pod Model A 16 has been imported by classifying the same un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as well as oral submissions. An application for advance ruling was filed before the erstwhile AAR on 26.12.2017. At the relevant time, the time limit prescribed in the statute was ninety days. This time period was amended to three months w.e.f. 29.03.2018 by virtue of the section 68 of the Finance Act, 2018. Now, the question that arises is that if an advance ruling is not rendered within the time limit prescribed in the statute, what would be the result? One possible answer to that is that the application lapses, and therefore, would require to be re-submitted or revalidated. The other possibility, the one favoured by the applicant, is that the application would continue to exist until an advance ruling is rendered. The scheme of advance rulings in customs was introduced by virtue of section 103 of the Finance Act, 1999. It is contained in the chapter VB of the Customs Act, 1962. Major amendments/deletions/substitutions were carried out to the scheme of advance rulings in the Finance Acts of 2017 and 2018. Prior to such changes, advance rulings were given by the AAR which comprised of a chairperson, who was to be a retired judge of the Supreme Court, an officer of the Indian Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etariat. The significance of this line of reasoning would be that the applicant would remain eligible for receiving advance rulings in respect of those products which have been imported after filing the advance ruling application. The definition of advance ruling as per clause (b) of the section 28E of the Act is that, It is a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation . Therefore, a reasonable interpretation of the definition would lead one to the conclusion that if an application for advance ruling has been filed, and there is a delay in rendering a decision, as has happened in this very instance, imports made after filing the advance ruling application would not take away the right of the applicant to receive a ruling. 7. In the present application, the applicant has indicated as many as five entry ports for the import of HomePods for which an advance ruling has been sought. Sub-section (1) of section 28-I of the Act states that, On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the Principal Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct intended for import, emphasised the fact that four Principal Commissioners/ Commissioners of Customs have concurred with their stand, reproduced the relevant portions of the tariff, made reference to the relevant portions of the HSN Explanatory Notes, drew attention to the relevant rule for interpretation of tariff, and also referred to United States Customs tariff rulings on two similar products, namely, Super Tooth and Sonos Play. On the basis of the same, they requested that a ruling be given classifying HomePods under sub-heading 85176290. During the hearing, Sri Kanchun Kaushal, representing the applicant took me through their submissions in great detail. The Additional/Joint/Deputy Commissioners, representing the concerned Principal Commissioners/Commissioners of Mumbai, Chennai and Bangalore also reiterated their earlier comments supporting classification under sub-heading 85176290. 9. According to the applicant, an Apple HomePod, the classification of which is the subject matter of the present proceedings, is stated to be essentially a home entertainment device allowing the user to connect wirelessly to internet via Wi-Fi or Bluetooth and stream music directly from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... connection, It can stream music from internet, Has Apple A8 microprocessor chip, Controls for pausing or skipping music and volume control, Provides multi-room speaker support with AirPlay 2, High-excursion woofer with custom amplifier, Array of seven horn-loaded tweeters, each with its ow custom amplifier, Six-microphone array for far-field Ski and room sensing, Internal low-frequency calibration microphone for automatic bass correction, Direct and ambient audio beamforming, Transparent studio-level dynamic processing. 10. As already mentioned, the applicant is of the view that the Apple HomePod merits classification under sub-heading 85176290. Four Principal Commissioners/Commissioners, at the Air Cargo Complexes at New Delhi, Mumbai, Chennai, and Bangalore also share the same view. The relevant portions of the heading 8517 of the first schedule to the Customs Tariff Act reads as below: 8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wirel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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