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TMI Blog2021 (10) TMI 1354X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities under Section 28EA of the Customs Act, 1962; these applications were transferred to CAAR, Mumbai. Communications were sent to the applicant from the Secretariat of the CAAR, Mumbai to inform whether they are still desirous of receiving advance rulings in respect of these pending applications. The applicant, vide their communication in February, 2021; informed that they are still interested in receiving the advance rulings and also that they will submit the applications in the revised format in due course. Thereafter, the applications were revived by the Secretariat in July, 2021, which was followed by physical submission of the applications on 10-8-2021. 2. In the original applications, the applicant had requested that the C.B.E. & C. be requested to appoint a Principal Commissioner/Commissioner as provided under the erstwhile regulations. Accordingly, the Board had appointed the Principal Commissioner (Import), Air Cargo Complex, New Delhi for the said purpose. In the new applications filed in August, 2021; however, the applicant has mentioned the four air cargo complexes at New Delhi, Mumbai, Chennai and Bangalore, as well as the seaports of Chennai and Nhava Shev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... device would connect to the chosen speakers or all speakers (which acts as an output device/s) to perform its function of streaming and amplification of streamed signals. (iii) Media Transmission Device (Echo Auto) Model No. BP39CN - It is a hands-free Alexa-enabled device meant for use in a motor vehicle. It allows its users to connect their smartphone to the device via Bluetooth and use Alexa services in their vehicle. Echo Auto has an in-built speaker for use only during initial device setup. The device can connect to the audio system of the vehicle via Bluetooth or auxiliary input. For its functioning, Echo Auto is connected to its user's smartphone for accessing internet and also the audio system of the vehicle for accessing its speakers. Echo Auto receives voice inputs and sends the same to the cloud via the smartphone. The response received from the cloud is played by the device on the audio system of the vehicle. The Echo Auto can be charged through the car's USB port or cigarette lighter port and can be mounted on to the dashboard for convenience. With the help of this device, a user can perform various functions such as voice interaction, music playback, ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electric signals played as audio output on internal speakers for the user to hear them. 4. In their applications, the applicant has communicated their opinion that all the above-mentioned devices merit classification under sub-heading 8517 62 90 of the Indian Customs Tariff. The applicant is also of the opinion that they are eligible to claim benefit of exemption under Sr. No. 20 of Notification No. 57/2017-Cus., dated 30-6-2017, as amended by Notification No. 2/2019, dated 29-1-2019 in respect of the four products. In his comments, the Commissioner of Customs, Chennai port has opined that the audio receiver, Echo Link is rightly classifiable under sub-heading 8518 40 00 as the device performs as a part of the music system and amplifies the sound. On similar grounds, the suggested classification for Echo Link Amp is 8518 50 00. In respect of Echo Auto, the Ld. Commissioner has concurred with the applicant's view regarding classification as well as eligibility for exemption, though no reasons have been provided for such views. Finally, w.r.t. Echo Flex, the suggested classification is 8519 89 90 on the ground that the device receives command, processes it, and then reproduces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RCA cables and in such case, the device will transmit the audio signal to output speakers, as are received from the input devices. Therefore, for determining the classification of this device, the question that needs to be answered is role/significance of the built-in amplifier, since audio-frequency electric amplifiers merit classification under sub-heading 8518 40 00. On careful consideration of the product description, I find that the built-in amplifier is an additional feature of the device, not the principal determining feature, with the device having relevance even without the use of amplification feature. Therefore, holding that the principal function of Echo Link Amp is also of reception, conversion and transmission or regeneration of voice or other data, I find that the device merits classification under Heading 8517 of the Import Tariff; and more specifically under sub-heading 8517 62 90 as other machines for the reception, conversion and transmission of voice, images or other data. 13.4 The device Echo Auto is a blue tooth enabled device, taking voice command which are converted into radio frequency waves, this device enabling the user to do variety of things by s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... informed that they are not seeking exemption benefit in respect of the devices Echo Link and Echo Link Amp, as the CAAR, New Delhi has already held these devices as ineligible on the ground that they are MIMO enabled. The applicant has submitted a compendium consisting of the relevant extracts from Customs Act, The CAAR Regulations, General Rules for Interpretation of Import Tariff, the tariff, the HSN Explanatory Notes, as well as a copy of the Ruling No. CAAR/Del/Amazon/17/2021, dated 20-7-2021 of the CAAR, New Delhi. 6. I have considered all the materials, documents, and information made available to me. The questions for determination are classification of four devices, namely, Echo Link/Link Amp/Auto/and Flex, and eligibility for exemption under Notification No. 57/2017-Cus., dated 30-6-2017, as amended. According to the applicant, all the four devices involved in the present proceedings are correctly classifiable under sub-heading 8517 69 90. The CAAR, New Delhi, having concurred with the views of applicant, has also ruled accordingly, as discussed hereinbefore. However, in the view of the Commissioner of Customs, Chennai port, while the device Echo Auto is classifiable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment (e.g., transmitters, receivers or electro-optical converters); codecs (data compressors/decompre-ssors) which have the capability of transmission and reception of digital information; and pulse to tone converters which convert pulse dialled signals to tone signals. The Explanatory Notes states that the Heading 8518 40 includes audio-frequency amplifiers used for the amplification of electrical signals of frequencies falling within the range of the human ear. The great majority are based on transistors or integrated circuits, but some are still based on thermionic valves. They are generally powered by a built-in power pack which may be fed from the mains or, particularly in the case of portable amplifiers, from electric accumulators or batteries. The input signals to audio-frequency amplifiers may be derived from a microphone, a laser optical disc reader, a pick-up cartridge, a magnetic tape head, a radio feeder unit, a film sound track head or some other source of audio-frequency electric signals. Generally speaking, the output is fed into a loudspeaker, but this is not always the case (pre-amplifiers can feed into a succeeding amplifier or be incorporated in an amplifier). A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion are required to be examined. The device Echo Link is intended to upgrade the existing stereo system of the user with high fidelity streaming music and Alexa. The use of this device would enable a user to stream his preferred sound throughout the home or chosen rooms/areas. It is important to appreciate that Echo Link is to be connected to Echo speaker (input device) as well as multiple existing speakers (output devices). The primary utility of the device is to upgrade any stereo system with high-fidelity streaming music and Alexa, control music selection, sound and playback with compatible Echo device or the Alexa app; connect to stereo (any input audio device) and group with other supported Echo devices to play music throughout the home; provide multiple digital and analog inputs and outputs compatible with existing stereo equipment. It is also significant to note that the device itself does not have microphone and speaker built in it and is required to be connected to a receiver or amplifier if anyone wants to connect it to passive speakers. Considering this factual backdrop, I am unable to concur with the views of the Commissioner of Customs, Chennai port that the device Ec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onverting them into radio frequency waves to send it across to Alexa Voice Services, and when it receives back the information requested by the user from AVS, it reconverts the received RF signals into electrical signals. Thus, the device in question enables the user to achieve a smart home configuration without physical contact. The applicant also describes it as a plug-in device for smart home control which allows the user to control compatible smart home devices in his home or office using his voice for inputting commands. Therefore, Echo Flex is a communication device, akin to apparatus covered under Heading 8517 of the Import Tariff. It is, therefore, rightly classifiable under sub-heading 8517 62 90 covering other machines for the reception, conversion and transmission of voice, images or other data. In this respect, I am unable to persuade myself to concur with the views of the jurisdictional Commissioner of Customs that the device merits classification under sub-heading 8519 89 90 as a sound recording or reproducing apparatus, examples of which, according to the Explanatory Notes, are record players, cinematographic sound recorders or reproducers etc., since the device in q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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