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2021 (8) TMI 411 - AAR - CustomsClassification of imported goods - two models of head mounted devices - to be classified under CTH 85176290, or under CTH 84.71? - HELD THAT:- The subject goods, namely head mounted tablets, have the following features, i.e., a high-resolution micro display comparable to the display of a 7-inch tablet device, a 2.0 GHz 8-core Qualcomm Snapdragon CPU, a 2 GB RAM, Bluetooth/GPS/GLONASS/A-GPS connectivity, Wi-Fi connectivity, 16 GB internal storage (expandable up to 254 GB with SD cards), 16 MP camera, among others. These devices weigh 380 to 430 grams and runs on 3250 mAh Li-ion rechargeable batteries having a battery life of 9 to 10 hours. These devices can process data, execute programmes, and connect to internet via a wireless network, send/receive e-mails, upload/download files, download software applications, conduct video/VolP (Voice over Internet Protocol) communication, among others. The input method for the device is voice commands, instead of a traditional keyboard. The device converts voice commands into text to execute desired functions. Placing reliance on the relevant Chapter Notes, the WCO's classification advice, the Board circular No. 20/2013-Cus., dated 14.05.2013 on classification of tablet computers, and also considering the fact that the head mounted tablet devices of RealWear incorporate all the features of a tablet computer, except a touch screen, the applicant has argued that these devices are more akin to automatic data processing machines than apparatus for transmission or reception of voices, image, data, including apparatus for communication in a wired or wireless network. It is also emphasised by the applicant that these Android based devices are capable of allowing installation of third-party software products, examples of which, cited by the applicant, are Microsoft Teams, Cisco Expert on Demand etc. These third-party applications are stated to be capable of being stored in the device for use when needed. The HMT device is a hands-free remote collaboration tool. It acts as a virtual assist and can capture videos and photos and share the same with workers at another location for any assistance. One can view documents/workflows. The product catalogues also lay emphasis on the device aiding mentor/expert connection with workers on field from remote location. Hence, it appears that HMT devices are a type of apparatus for the transmission or reception of speech, images and other data between two points. Based on the discussion, HMT devices are rightly classifiable under sub-heading 85176290. Thus, head mounted tablets of M/s. RealWear, namely HMT-I and HMT-1Z1 merit classification under heading 85.17, and more specifically under sub-heading 85176290 of the first schedule to the Customs Tariff Act, 1975 - The rate of customs duty for these devices, as per the tariff in force, is 10% advalorem - IGST is payable on imports @ 18%. The imports would also attract Social Welfare Surcharge @ 1% - The benefit of exemption available to goods of sub-heading 85176290 by virtue of Sr. No. 20 of the table annexed to the Notification No. 57/2017-Cus., dated 30.06.2017, as amended.
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