TMI Blog2021 (8) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... it would fall under sub-heading 8517 62 and consequently deserves to be classified it under CTH 8517 62 90. Even after holding that Bluetooth module is not a part as it can be used in many devices like printers, computers, hard drive, compact disc, digital camera etc., and all these devices can work independently without Bluetooth module, the Commissioner (Appeals) still accepted the contention of the Department that it would be classifiable under CTH 8529 90 90 on the basis of Section Note 2(b) for the reason that Bluetooth module is principally used with car infotainment system. There is no challenge by the Department to the finding recorded by the Commissioner (Appeals) that Bluetooth module is not a part of car infotainment systems as the Department has not filed any cross-appeal. It is, therefore, not possible to accept the contention of the learned Authorized Representative of the Department that despite a specific finding having been recorded by the Commissioner (Appeals) that the Bluetooth module is not a part , of car infotainment systems, it should still be considered as a part because of the description given by the appellant in the Bill of Entry - Once Blue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like laptop, mobile phone, infotainment systems are required to be connected to each other through Bluetooth technology, a Bluetooth module has to be present in it. 5. The functioning of Bluetooth module has also been described. It has been stated that for instance in a case whether two devices are mobile phone and car infotainment systems, a user will have to switch on the Bluetooth of the mobile phone which is to be connected with the car infotainment systems. Once the Bluetooth is ON in the mobile phone, a user will have to switch ON the Bluetooth of the car infotainment system also. Since Bluetooth works on a specific frequency, both the products can be interconnected to each other through radio waves. Thereafter, the Bluetooth module of the mobile phone and Bluetooth module of the car infotainment system communicate with each other. Without the presence of the Bluetooth module in electronic devices like mobile phone, laptop, printer or car infotainment system, the said devices can still perform their respective functions but they will not be able to connect wirelessly through Bluetooth technology. 6. According to the appellant, the Bluetooth module installed in the car i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8529 90 90. The relevant portion of the order dated 23.02.2017 of the Assistant Commissioner is reproduced below: The issue to be decided in the classification of Bluetooth Module which the said Importer has claimed under CTH 85176290. The basic question to be decided is the independent status of Bluetooth Module, if it is a part, an apparatus, a machine or an accessory. The basic function of Bluetooth is to enable exchange of data between two Bluetooth enabled device within a wired or wireless network. It s application can be used for the following devices (a) Printer (b) Computers (c) Hard Drive (d) Keyboard/Mouse (e) Speaker (f) Compact Disc (g) Digital Camera (h) Global Positioning System (i) Clock Radio (j) Video Monitors/Televisions (k) Video game Machines. As Bluetooth in used in so many devices as enumerated above and all these devices can work independently without having Bluetooth Chip in these devices, so it cannot be termed as part and has been rightly pointed out by the Importer in the written submission. They had also referred to the judgment of the Hon ble Supreme Court in the case of Commissioner of Central Excise Delhi Versus Insulation El ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tric Machine and apparatus having individual functions, not specified or included elsewhere in the chapter and CTH 85437099 is more akin to its classification. Further, as per note 2(b) of chapter note under section XVI, wherein it states that other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machine of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machine of that kind . Since Bluetooth Module is principally used in car infotainment system, as declared by the Importer, it will merit classification under CTH 85299090. (emphasis supplied) 10. The Commissioner (Appeals), as can be seen from the order itself, merely reproduced parts of the order passed by the Assistant Commissioner and dismissed the appeal after upholding the assessment order. The relevant portions of the order passed by the Commissioner (Appeals) are reproduced below: 5.1 The basic function of Bluetooth is to enable exchange of data between two Bluetooth enabled devices within a wired or wireless network. It s application can be used for the following devices (a) Printer (b) Computers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atus or machine. As the apparatus/machine do not specifically fall under any chapter heading, it will attract its classification under CTH 8543, which states that Electric Machine and apparatus having individual functions, not specified or included elsewhere in the chapter and CTH 85437099 is more akin to its classification. Further, as per note 2(b) of chapter note under section XVI, wherein it states that other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machine of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machine of that kind. Since Bluetooth Module is principally used in car infotainment system, as declared by the Importer, it will merit classification under CTH 85299090. (emphasis supplied) 11. Shri B.L. Narasimhan, learned counsel appearing for the appellant made the following submissions: (i) The impugned goods are appropriately classifiable under CTH 8517 and not under CTH 8529. For any product to be classifiable under the sub-heading 8517 62, it should receive, convert, and transmit voice, images and other data. The impugned goods rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. 373 (S.C.) ] ; and (vi) An order has to be sustained on the basis of the findings given thereunder and not on what could be the intention of the person passing the order. In this connection, reliance has been placed on the judgment of the Supreme Court in Mohindhr Singh Gill and another vs. Chief Election Commissioner, New Delhi and Others [ (1978) 1 SCC 405 ]. 12. Shri Rakesh Kumar, learned Authorized Representative of the Department, supported the impugned order and made the following submissions: (i) Where the subject goods are principally (primarily/ mainly/chiefly) used with the apparatus/machines of Headings 8525 to 8528, the same shall be classified under Heading 8529. The subject goods may not be an integral part, but can be a part principally used for the apparatus of Heading 8525 to 8528 to enhance its outcome; (ii) Chapter Heading 8517 essentially talks about telephone/telecommunication but the appellant had declared the goods as part of Car infotainment System; (iii) The Tariff Heading of goods is ascertained on the basis of the description of subject goods as declared and not otherwise. The importer declared the goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me. 15. To appreciate the contentions advanced on behalf of the parties, it would be appropriate to reproduce the relevant portions of Chapter 85 and they are as follows: Chapter 85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 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 wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528. ******** ********** -- Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the car, converted into electric signals and sent to the Bluetooth module to be further transmitted to phone for regular telecommunication transmission thereafter). Thus, the Bluetooth module is engaged in reception, transmission and conversion of voice and other form of data. Accordingly, it would fall under sub-heading 8517 62 and consequently deserves to be classified it under CTH 8517 62 90. 17. Even after holding that Bluetooth module is not a part as it can be used in many devices like printers, computers, hard drive, compact disc, digital camera etc., and all these devices can work independently without Bluetooth module, the Commissioner (Appeals) still accepted the contention of the Department that it would be classifiable under CTH 8529 90 90 on the basis of Section Note 2(b) for the reason that Bluetooth module is principally used with car infotainment system. 18. There is no challenge by the Department to the finding recorded by the Commissioner (Appeals) that Bluetooth module is not a part of car infotainment systems as the Department has not filed any cross-appeal. It is, therefore, not possible to accept the contention of the learned Authorized Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls) could not have applied Section Note 2(b). 22. The submission of learned Authorized Representative of the Department that since the Commissioner (Appeals) has classified Bluetooth module under Heading 8529 it should be presumed that he has considered it to be a part cannot also be accepted in view of the specific finding recorded by the Commissioner (Appeals) that Bluetooth module is not a part . An order has to be sustained on the basis of the findings given thereunder and not on what could be the intention of the person passing the order in view of the judgment of the Supreme Court in Mohindhr Singh Gill. 23. Once Bluetooth module is classified under CTH 8517 62 90, it would not be necessary to examine the contention advanced by the learned counsel for the appellant that even if Bluetooth module is considered to be a part of car infotainment systems, it would still merit classification under CTH 8517 62 90. 24. Learned Authorized Representative of the Department has placed reliance upon the judgment of the Supreme Court in Westinghouse. This judgment is regarding classification of parts whereas, as noticed above, the Bluetooth module cannot be considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for actual functioning of the product. Here the Bluetooth can be correctly termed as an accessory as it facilitates exchange of data between two devices upto a defined limit of around 10 mtrs. Admittedly, all Bluetooth compliant devices can function without having Bluetooth Module. In the same judgment accessory has been defined as Accessory is supplementary or subordinate in nature and need not be essential for actual functioning of the product. Here the Bluetooth can be correctly termed as an accessory as it facilitates exchange of data between two devices upto a defined limit of around 10 mtrs . 3. The said party s submission that Bluetooth Module will attract classification under 85176290 in view of the chapter note 2 (b) to annexed to section XVI of the customs tariff, Wherein it states that other parts if suitable for use other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in car infotainment system, as declared by the Importer, it will merit classification under CTH 85299090. In view of the foregoing discussions, it is apparent that Bluetooth Module cannot be termed as part of car Infotainment systems. It can be termed as an apparatus or machine. As the apparatus/machine do not specifically fall under any chapter heading, it will attract its classification under CTH 8543, which states that Electric Machine and apparatus having individual functions, not specified or included elsewhere in the chapter and CTH 85437099 is more akin to its classification. Further, as per note 2(b) of chapter note under section XVI, wherein it states that other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machine of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machine of that kind. Since Bluetooth Module is principally used in car infotainment system, as declared by the Importer, it will merit classification under CTH 85299090. 26. As an appellate authority, the Commissioner (Appeals) should have considered the factual and leg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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