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TMI Blog2021 (12) TMI 1471X X X X Extracts X X X X X X X X Extracts X X X X ..... ire TV Stick, 3rd Gen.), and Alexa Voice Remote Lite (1st Gen., Model No. H69A73) for HDMI Digital Media Receiver. However, since no rulings were issued by the said authority, the pending applications were transferred to the Customs Authority for Advance Rulings, Mumbai in February, 2021. 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 the pending applications. The applicant, vide their communication dated 25-2-2021 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 e-mailed by the applicant in July, 2021, which was followed by physical submission of the applications in August, 2021. 2. In both these applications, the applicant had originally requested for appointment of a Commissioner of Customs as envisaged under section 28-1 (1) of the Customs Act, 1962 read with the relevant regulations in force at the material time. Accordingly, the Chairman, Central Board of Indirect Taxes and Customs had appointed the Principal Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ames/music and download additional applications. The Fire TV Sticks source the content requested by the user from internet. As already mentioned, the applicant has clarified that the 3rd generation device includes everything that the 1st generation device offers, the difference between the two being in their inbox voice remote control and accessories. The Fire TV Stick Lite (1st Gen.) comes with Alexa Voice Remote Lite (1st Gen.) which works on radio frequency or Bluetooth technology. The Fire TV Stick (3rd Gen.) comes with All new Alexa Voice Remote which is both Bluetooth and infrared enabled. Being infrared enabled, it can control a wide range of other infrared devices and eliminates the need for a second remote. In addition to the buttons for regular Bluetooth enabled features, it has volume up and down/mute/power buttons, which on pressing, sends out infrared signals to infrared controlled devices. 5. The Alexa Voice Remote Lite (1st Gen.) is a Bluetooth enabled remote which works on radio frequency and is primarily meant to operate the Fire TV Sticks via Bluetooth when it is paired with the remote. It helps the user to find their favourite shows, live television programs, ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant appears to be correct as the device streams digital audio/video content high definition and 4K TV sets. 7. The applicant was heard on 23-11-2021. Sri Lakshmikumaran, advocate, appearing on behalf of the applicant, has taken me through the product specifications and functionalities. He informed that all the devices involved in the present proceedings were also before the Customs Authority for Advance Rulings, New Delhi in the case of M/s. Amazon Wholesale India Pvt. Ltd. and that the said Id. authority has classified the Fire TV Sticks, a kit containing the HDMI digital media receivers and wireless remotes, under sub-heading 85176290. In so far as classification of wireless remotes, when imported separately, is concerned, the CAAR, New Delhi has ruled that the proper classification is sub-heading 85269200. The Id. counsel has fairly conceded that while from a purely functional point of view, the proper classification would have been 8517, since there is a specific tariff entry for wireless remote control devices, and the heading 8526 occurs last in numerical order, the ruling of the CAAR, New Delhi has been accepted by them. 8. Since the issue of maintainability has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same devices were under consideration before the Customs Authority for Advance Rulings, New Delhi in the case another applicant and the matter stands decided. Therefore, deferring the decision in these applications or even rejecting them would not serve any purpose. In so far as the issue of advance rulings in respect of an ongoing activity is concerned, with due regard to the definition of advance ruling in law, it is my considered opinion that operation of advance rulings do not get extinguished just because an activity of import/export has taken place earlier, irrespective of the frequency of such activity. Drawing strength from the provisions of law reproduced earlier in this paragraph, a correct interpretation would be that advance rulings can be sought and given even for ongoing activities, so long as such activities, in respect of the same applicant, are not involved in any dispute; or already settled by an order of any competent tribunal/court. However, the application of such an advance ruling, in respect of an ongoing activity, shall be prospective and would not have any implication for activities, which stand concluded. 9. In the two applications for advance rulings bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from Alexa Voice remote (lite 1st Gen./2nd Gen.) via Bluetooth. Such instructions are to select the content that the user wants to watch on his television. The digital media receiver receives instructions of the user, converts them into RF signals and transmits them to the cloud for processing by AVS. AVS converts the signals into a readable format, extracts the requested content from the Amazon cloud and transmits the same to the media receiver, which on receipt of the output, re-transmits the same for display on the user's television. Thus, HDMI digital media receiver is a device that transmits/receives RF signals and converts it into a format readable by the system and transmits the same which is displayed on the screen. The device, having been designed for reception, conversion and transmission of voice, images or other form of data merits classification under six-digit tariff entry 851762. The Commissioner of Customs (Import), Chennai sea port, is of the opinion that the function of digital media receiver is to broadcast/transmit signals to televisions and therefore, merits classification under sub-heading 85255030. As far as the contending tariff entry 8528 is concerned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading 8517620, on the ground that the digital media receiver, and not the wireless remote, gives the goods its essential character. 12. Coming to the question of eligibility to claim the benefit of exemption under serial no. 20 of the Notification No. 57/2017-Cus., dated 30-6-2017, as amended by the Notification No. 2/2019-Cus., dated 29-1-2019, I find that the latest amendment to the said exemption was vide Notification No. 3/2021-Cus., dated 1-2-2021, and also that the said notification provides a concessional rate of duty to all goods falling under sub-headings 85176290 and 85176990, except the following, (a) wrist wearable devices, commonly known as smart watches; (b) optical transport equipment; (c) combination of one or more of packet optical transport product or switch; (d) optical transport network products; (e) IP radios; (f) soft switches and voice over internet protocol equipment or VoIP phones, media gateways, gateway controllers and session border controllers; (g) carrier ethernet switch, packet transport node products, multiprotocol label switching transport profile products; (h) multiple input/multiple output and long term evolution products. Since, Fire TV Sticks d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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