TMI Blog2022 (2) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the undeniable facts, I feel it would be improper on my part to create further discordance on this issue which is already sub-judice. Therefore, in my considered opinion, the issue of classification of the 15 Echo family devices, except the device 'Wireless Speaker Device, Model No. P5B83L', which is not an Echo family device, need to await the decision of the Hon'ble High Court of Delhi, which is already seized of the matter in the form of the appeals of M/s. Amazon Wholesale India Pvt. Ltd. Reliance placed upon the judgment of the Hon'ble High Court of Bombay in the case of TITANOR COMPONENTS LTD. VERSUS COMMISSIONER OF INCOME TAX [ 2009 (4) TMI 67 - BOMBAY HIGH COURT ], wherein it was held that if a similar appeal is pending before the Hon'ble High Court, it would have been proper for the Tribunal to wait till the question of law is adjudicated by the Hon'ble High Court in the appeals pending before it - The ratio of the above judgment was followed by the Larger bench of the CESTAT, Mumbai in the case of C. PINTO VERSUS COMMISSIONER OF CUSTOMS, MUMBAI [ 2018 (2) TMI 336 - CESTAT MUMBAI ]. Further, the Larger Bench of CESTAT, New Delhi in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the device Echo Portable Smart Speaker (Model No. RA73E6) 11-11-2019 1. The applicant originally requested for appointment of a Commissioner of Customs. 2. Chairman, CBIC appointed Principal Commissioner of Customs (Import), Air Cargo Complex, New Delhi as jurisdictional Commissioner. 3. In the application submitted in August, 2021, the applicant expressed desire to import through air cargo complexes of New Delhi, Mumbai, Chennai and Bengaluru as well as the sea ports of Chennai and Nhava Sheva. 4. In the comments received from Chennai Sea Port, the suggested classification is sub-heading 85198990 whereas, the Air Cargo Complex, Mumbai is of the opinion that while the correct classification is sub-heading 85176290, benefit of Sr. No. 20 of the Notification No. 57/2017-Cus., dated 30-6-2017 is not available. 2. CAAR/CUS/APPL/26/2021 Classification and eligibility for the benefit of Sr. No. 20 of Notification No. 57/2017-Cus., dated 30-6-2017, as amended, in respect of the device Echo Show 10 (Model No. T4E4AT) 17-8-2020 1. The applicant originally requested ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ai and Nhava Sheva. 5. In the comments received from Chennai Air Cargo Complex, the suggested classification is sub-heading 85182200. 5. CAAR/CUS/APPL/33/2021 Classification and eligibility for the benefit of Sr. No. 20 of Notification No. 57/2017-Cus., dated 30-6-2017, as amended in respect of the device Echo Dot (3rd Gen.) with Clock, Model No. 36EBT3 11-9-2019 1. The applicant originally requested for appointment of a Commissioner of Customs. 2. Chairman, CBIC appointed Principal Commissioner of Customs (Import), Air Cargo Complex, New Delhi as jurisdictional Commissioner. 3. In the application submitted in August, 2021; the applicant expressed desire to import through air cargo complexes of New Delhi, Mumbai, Chennai and Bengaluru as well as the sea ports of Chennai and Nhava Sheva. 4. In the comments received from Chennai Air Cargo Complex, the suggested classification is sub-heading 85182100. The Air Cargo Complex, Mumbai is of the opinion that while the correct classification is sub-heading 85176290, the benefit of Sr. No. 20 of the Notification No. 57/2017-Cus., dated 30-6-2017 is not availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R/CUS/APPL/39/2021 Classification of the following devices: - 1. Digital Media Receiver (with touch screen), Model No. DW84JL 2. Digital Media Receiver, Model No. D9N29T 3. Digital Media Receiver, Model No. L9D29R 4. Digital Media Receiver, Model No. C1125P 5. Wireless Speaker Device, Model No. P5B83L 10-9-2018 1. The applicant originally requested for appointment of a Commissioner of Customs. 2. Chairman, CBIC appointed Principal Commissioner of Customs (Import), Air Cargo Complex, New Delhi as jurisdictional Commissioner. 3. Comments sent by Principal Commissioner of Customs (Import), Air Cargo Complex, New Delhi, dated 5-9-2019 propose classification under sub-heading 85176290. 4. In the application submitted in August, 2021, the applicant expressed desire to import through air cargo complexes of New Delhi, Mumbai, Chennai and Bengaluru as well as the sea ports of Chennai and Nhava Sheva. 5. In the comments received from Chennai Sea Port, the suggested classification entries are 84715000 and 85182100; while the Air Cargo Complex, Chennai has proposed sub-headings 85176290 and 85182100. The Air Cargo Complex, Mumbai has opined that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c, reading newspaper/audio-books, providing traffic, weather and other real-time information and controlling smart devices. The Echo family devices are communication devices in the form of speaker with Alexa technology built in it. These devices respond to the name 'Alexa', which is the most common 'wake word'. This 'wake word' can be changed by the user to either 'Amazon', 'Computer' or 'Echo'. These devices have microphones to detect the wake word. Once, the devices, through microphones, analyse the wake word, they become functional and start recording the user's voice. When the user finishes speaking, the devices send such voice command, after converting it to radio frequency signals, over the internet to Amazon. The service that processes this recording is called Alexa Voice Services or AVS. AVS converts the RF signals into commands that it interprets. Thereafter, it analyses the command and sends back the results to Echo device in question. The Echo device, in turn, converts the results into electric signals played as audio output on internal speakers and/or display screens for the user to hear/see them. 3. The only device ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ackground, the Hon'ble High Court held that the applicant and its holding companies were distinct legal persons, and even if the issue pending before CESTAT in the matter of the holding company was identical, since the matter was not pending in applicant's own case, proviso (a) to section 96D(2) was inapplicable; that, the proviso (a) to section 96D(2) of the Finance Act is pari materia with section 28-I of the Customs Act; that, the first and foremost rule of interpretation is literal interpretation. In the case of Hiralal Rattanlal [(1973) 1 SCC 216], the Hon'ble Supreme Court held that if the language of the provision in unambiguous, no other rule of construction can be applied. The aforesaid ratio has consistently been followed in the cases of Calcutta Knitwears [(2014) 362 ITR 673 (SC)], Grasim Industries [(2002) 4 SCC 297], Greatship (India) [2015 (39) STR 754 (Born)], and Dilip Kumar Company [2018 (361) ELT 577 (SC)]; that, if proviso (a) is interpreted by disregarding the phrase 'Applicant's case', it shall tantamount to ignoring the specific prescription of the statute. The Hon'ble Supreme Court, in the case of Chief Information Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to the functioning of these devices. The learned counsel also relied upon my own earlier decision in respect of 'Apple HomePods' and explained/emphasised the similarities between 'Siri' and 'Alexa' based devices. Shri Prabhakar Nigam, representing the Commissioner of Customs, Chennai - VII (Air Cargo Complex), argued that the proper classification of Echo family devices would be headings 8518 and 8528 since these devices are meant to primarily function has sound reproducing speakers or viewing screens, as the case may be. 7. I have considered all the material facts and evidences. It is a fact that the issue of classification of some of the Echo family devices listed above were under consideration of CAAR, New Delhi and after due consideration, the said authority has given rulings in respect of them. The applicant, being aggrieved by such rulings, have approached the Hon'ble High Court of Delhi for appropriate relief. The applicant is of the view that all the Echo family products merit classification under sub-heading 85176290. However, the CAAR, New Delhi has ruled that Echo (4th Gen.), Model No. L4S3RE; Echo Dot (4th Gen.), Model No. B7W64E; Echo D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom another Apple device with Airplay 2 functionality. Besides, the device could provide news, weather, traffic and sports updates, translations, set timers and announced the time, all via voice commands/requests received through a built-in digital assistant (Siri). The device converted the voice commands/requests into audio text in order to search the internet for information, and once found, it regenerated the information back to the user in the form of speech from the device's speaker. Further, the device also had the ability to control a wide range of home appliance and accessories via a hardware certification platform and database system that allowed to integrate, configure, and communicate between a wide variety of products like smart locks, lights, security equipment, and other home automation products, from air conditioners to garage doors to security cameras all connected to the same wireless network. After considering all aspects, I had ruled, vide Ruling No. CAAR/Mum/ARC/14/2021, dated 10-6-2021, that 'Apple Home Pods' merit classification under sub-heading 85176290 of the first schedule to the Customs Tariff Act, 1975. 9. Comparing the specifications, fun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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