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TMI Blog2023 (12) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute the fact that this Web Cameras satisfies the condition laid down under Chapter Note 5(C) and to be excluded from Chapter 8471, it needs to fall under one of the exclusions as specified under Chapter Note 5(D) - The Web Camera cannot be considered as television camera or digital camera or a video camera recorder. Hence, it definitely falls under Chapter Heading 8471. As per Chapter Note 5(C) and 5(D), the items are rightly classifiable under Chapter Heading 8471 as long as they satisfy the conditions laid therein and there is no dispute that these conditions have not been satisfied, the item has been excluded from Chapter 8471 only on the ground that Chapter Note 5(D) excludes television camera, digital cameras and video camera re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ADP machine. 2. The learned counsel submitted that the Mi Web Camera consists of camera lens, a USB plug to connect exclusively to an ADP machine as a plug and play and a clamping slot. The web camera is solely and principally used with the ADP machine and cannot function independently. The web camera is used to capture images/video and deliver the same in the form of codes signals which is displayed on the computer/laptop. Its application is for videoconferencing, online chatting etc; it is imported solely for the purpose of using the same with the appellant s new product known as notebook computers, which are ADP machines. Therefore, it is claimed by the appellant that the web camera is rightly classifiable under Chapter heading 8473 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein it is stated that the unit is regarded as being part of an Automatic Data Processing (ADP) system if it meets the conditions mentioned therein. Since the said item meets the conditions, they are rightly classifiable under Chapter Heading 8473. 3. It is further submitted that the Mi Web Camera does not have an identifiable individual function as it can function only when used with the ADP machine and cannot work in isolation or independently but needs to work only with the ADP machine and therefore, needs to be classified under Chapter Heading 8473 as held in the case of M/s. Asianet Satellite Communication Ltd vs. Commissioner of Customs (Appeals), Cochin reported at 2023 (7) TMI 598 CESTAT Bangalore. It is also claimed that the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r through one or more other units and; (iii) it is able to accept or deliver data in a form (codes or signals) which can be used by the system separately presented units of an automatic data processing machine are to be classified in heading 8471. However, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of (ii) and (iii) above, are in all cases to be classified as units of Heding 8471. (D) heading 8471 does not cover the following when presented separately even if they meet all of the conditions set forth in Para paragraph (C ): (i) .. (ii) .. (iii) (iv) television camera, digital camera and video camera recorders; (v) ., It is further submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bearing on the customs classification thereof . 7. The Tribunal in the case Hi-Tech Computers vs. Commissioner of Customs vide Final Order Nos. 1462-1464/2004 dated 3-9-2004 in Appeal Nos. C/26, 62/2003 and 188/2001 reported at 2005 (180) E.L.T. 356 (Tri. - Bang.). The facts before the Tribunal as seen from the order are as under: 3. In Order-in-Appeal No. 9/2003-Cus. dated 14-1-2003, the issue pertaining to classification of item, viz. Typhoon Easy Cam 110K complete set (commonly known as web camera). The assessee in this appeal has claimed the classification of the item as Computer parts and accessories under sub-heading 8471.60 as input or output units, whether or not containing storage units in the same housing. The Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an ordinary camera and therefore will not fall under chapter 90 as held by the lower authority. The proper classification will be under chapter 84.73 or 84.71. Besides, a perusal of the aforesaid judgment of the Hon'ble Tribunal also clearly indicates that all those items which come along with the computer are to be treated as spares and accessories. Thus, in view of the submissions made by the appellants and in view of the case law referred to by the applicants at the time of personal hearing, it is observed that the proper classification of the product under classification would be under chapter 8473.30 or 84.71 and not under chapter 90 as held by the lower authority. I set aside the order passed by the lower authority and allow the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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