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TMI Blog2024 (2) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... ), battery and battery charger, Adapter, etc.] and stated that, the subject goods have a design concept that is based on the traditional still image cameras with interchangeable lens and a viewfinder along with the shutter release button; the subject goods have a high resolution (45.7 million) sensor (with a sensor size of this camera is 35.9 mm x 23.9 mm); these design elements make the subject goods more suited for still photography; the subject goods in addition to the capturing still images are able to record video for more than 30 minutes in a single sequence, however, maximum video recording capability is subject to temperature inside the camera caused by shooting modes, connectivity and other usages and storage space available in the internal/external memory. As regards other features, it is also stated inter alia that, the subject goods do not host any dedicated heat management module in line with its design language : these are made compact and lightweight due to the mirrorless technology it uses; the grip design used in the subject goods is a notable feature for still image cameras; these goods support almost all the essential and extended range of accessories including, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may arise, does not mean that the question is pending consideration. For a question to be stated to be pending, the concerned officer must formally set forth the same for the assessee to contest the same. Any preliminary exercise done by an officer of customs, to consider whether any question for consideration arises, would not preclude the CAAR from giving its advance ruling on that question. The possibility that a question would arise for consideration of a customs officer, appellate tribunal or court, is not a ground contemplated under clause (a) of the proviso to Section 28-I(2) of the Customs Act; in light or the above, the applicant is satisfying the afore-stated conditions; the applicant in the present case proposes to commercially import subject goods for sale in the Indian market; for the purpose of clearing the subject goods for domestic consumption, it is essential for the applicant to identify the correct classification under which such goods would be cleared and the applicable rate of customs duty thereon; therefore, it flows that in the present case, the applicant satisfies all the three-criteria required for filing the application for advance ruling, namely : (a)&n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operation in a high-radiation environment. These cameras are designed to withstand a total radiation dose of at least 50 x 103 Gy(silicon) [5 x 106 RAD (silicon)], without operational degradation; 3. Sub-heading 8525 83 covers night vision television cameras, digital cameras and video camera recorders which use a photocathode to convert available light to electrons, which can be amplified and converted to yield a visible image. This sub-heading excludes thermal imaging cameras (generally sub-heading 8525 89),"; it is important to note that the aforementioned definitions have been inserted into the HSN 2022 as part of Strategic Trade Control (STC) to protect the society from transnational acquisition of strategic weapons and goods used to develop or deliver them; it can be seen that the subject goods do not satisfy any of the conditions mentioned in sub-heading Note 1, 2 or 3 of Chapter 85 of Customs Tariff; the applicant submits and undertakes that the subject goods cannot perform the functions of radiation-hardened cameras, high-speed cameras and night-vision cameras; the subject goods are neither designed for the above stated functions nor has the capability of performing these f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on perusal or the preamble to Notification No. 50/2017, it provides that this notification superseded then prevailing Notification No. 12/2012-Cus., dated 17-3-2012 except for things omitted before such suppression; at this juncture it is important to note that Notification No. 50/2017-Cus. is a successor notification to Notification No. 12/2012; it carries forward exemptions for majority or the products and the need for a fresh notification was necessitated with the introduction of the GST regime; 'Digital Still Image Video Cameras' were identically granted exemption under Serial Number 428A of Notification No. 12/2012; hence, it would be important to understand the scope of exemption entry under S. Nos. 428A of Notification No. 12/2012 and apply the same while interpreting S. No. 502 of Notification No. 50/2017; Serial Number 428A of Notification No. 12/2012 was introduced by virtue of Notification No. 28/2015-Cus., dated 30-4-2015; vide this Notification, conditional exemption was granted to 'Digital Still Image Video Cameras' under the earlier entry to Notification No. 12/2012 was made unconditional; during this time, Letter D.O.F. No. 334/5/2015-TRU, dated 30-4-2015 was issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Cameras' classifiable under CTI 8528 89 00 of the Customs Tariff irrespective of their video recording time; in the present case, the subject goods are capable to capture still images and record videos; thus, the applicant is of the considered view that the subject goods are eligible to claim exemption benefit under Serial Number 502 of Notification No. 50/2017-Cus.; it is pertinent to note that the applicant has obtained BIS Certification for the subject goods under the category of 'Digital Cameras'; the categorization of subject goods under this segment further showcases that the subject goods are eligible to claim the exemption benefit; similar to classification, Section and Chapter Notes also act as guiding factor for claiming exemption benefit; Note 3 to Section XVI of Customs Tariff provides that unless otherwise required, the goods must be classified basis their principal function; keeping the aforementioned in mind, the applicant most humbly submits that it used to classify earlier models in the erstwhile Customs Tariff under CTI 8525 80 20 as 'digital camera' basis their predominant function to click still images; in the present case, the subject goods can record videos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrol along with suitable terminals like SDI, etc. In the present case, the subject goods have bigger sensor size, comparatively lower bitrate and 45.7 m pixels. Additionally, there is no cooling fan present inside the subject goods. Therefore, keeping the aforesaid factor in mind, the subject goods have features more inclined towards the capturing of still images. * Functionalities : Video cameras usually have features for better operation of movie recording capabilities which are usually not present in a Digital Still Image Video Camera. Essentially, the subject goods are a trade-off of some of the following features in order to keep such cameras smaller and lighter than the video cameras. One such feature is a Cooling Fan and video cameras are generally equipped with a cooling fan. This reduces the temperature inside the video camera and allows for longer duration of recording. The subject goods do not have a cooling fan making it less favourable to video recording usage. The subject goods have the capability of carrying out the function of still photography for longer durations with no significant battery or heating issues. However, although the subject goods have capability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24,94,63,502/- from ACC Import, New Delhi, vide these imports, the applicant has self-assessed the goods with classification under CTH 8525 89 00 with benefit of Notification No. 50/2017-Cus. (S. No. 502); therefore, the applicant is seeking advance ruling for classification (CTH 8525 89 00) and Notification benefit (50/2017-Cus., S. No. 502) in which they are already importing the same product; it appears that the applicant does not fulfil the provisions of Section 28E(b) of the Customs Act, 1962 to seek advance ruling in respect of the goods which are already being imported by them in commercial quantity before any written decision of the Authority; it appears that the application filed by M/s. Nikon India Private Limited merits rejection in terms of Section 28E(b) of the Customs Act, 1962. 6. In respect of the application for advance ruling, personal hearing took place on 1-9-2023 in virtual mode, wherein the advocate for the applicant started by referring to the comments of the concerned Commissionerate wherein it is stated that as per definition of advance ruling under Section 28E(b) of the Customs Act, 1962, there should be a written decision of 'advance ruling' on the ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meras that are primarily suited for still image photography and also have the capability to record videos; thus intention can also be ascertained by application of Note 3 to Section XVI of the Customs Tariff which requires goods to be classified as per their principal function. The applicant also reiterated that the subject goods are classifiable under sub-heading 8525 89 00 and are eligible for exemption from payment of BCD in terms of Notification No. 50/2017-Cus. (Sl. No. 502). 9. Having completed the procedure laid down in the CAAR Regulations, I first allow the application, taking into account the facts of the case and submissions made by the applicant and the concerned Principal Commissioner of Customs. In view of the submissions made in the application for advance ruling, comments of the concerned Commissionerate, submissions made by the applicant during the personal hearing and their additional submissions. I proceed to discuss and give ruling on the following questions : (a) Whether the subject goods proposed to be imported by the applicant are classifiable under Customs Tariff Item 8525 89 00 of the Customs Tariff? (b) If the answer to question (a) is aff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y still image cameras. Such cameras fall under Tariff Item 8525 80 20. However, digital cameras that can take both still images and moving images like camcorder or video recorder falling under Tariff Item 8525 80 30 shall not be covered under the said entry. Digital still image video cameras can also be differentiated from the still cameras of Heading 9006 i.e. photographic film cameras of this type are also not eligible for the benefit of these notifications; it is clarified that benefit of entry at Sl. No. 314 of Notification No. 21/2002-Cus. as well as Sl. No. 13 of Notification No. 25/2005-Customs, dated 1-3-2005 would be available to 'digital cameras' with still image recording as its principal function. This would also include those digital cameras that have the capability of recording moving images Tor a limited period of time. 9.2 I note that the concerned Commissionerate has neither commented on classification of the subject goods nor on applicability of Serial Number 502 of Notification No. 50/2017-Cus., dated 30-6-2017, on import of the subject goods. However, it is observed that the concerned Commissionerate has allowed import of the subject goods under sub-heading 852 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capability' would be eligible for exemption benefit under the entry as 'Digital Still Image Video Camera'. In the said circular, it is mentioned inter alia that, "the World Customs Organization (WCO) has clearly outlined that features of the Digital Video camera. Such cameras have been described as digital cameras that capture light images, convert them to digital electronic signals and then record such digital image data on internal or removable media (built-in memory or diskettes). These images can be reproduced by connecting the camera to a video monitor (or TV) an ADP machine, or by inserting the media in the ADP machine. This type digital cameras can produce both video signals (e.g. NTSC, PAL, SECAM or other similar video format) and computer readable Image data like MPEG"; the term video relates to recording, reproducing or broadcasting of visual images; is a technology of electronically capturing, recording; processing, storing transmitting and reconstructing a sequence of still images representing scenes in motion; the term 'still Image video' camera covers the type of camera that take still images and stores them as single frame of video; these single video frames when rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omparison to video shooting; the ISO capabilities (low light photography) are better for still image photography; image resolution is higher in comparison to video resolution, thus showcasing that the subject goods utilize the full capability of its sensor during still photography; as a result of advancement in technology, new products and new variations of existing products are developed from time to time; the subject goods owing to its features have principal function of capturing still images. The applicant has also stated that the subject goods do not satisfy any of the conditions mentioned in sub-heading Note 1, 2 or 3 of Chapter 85 of the Customs Tariff, the cameras imported by the applicant are regular consumer goods for use in standard environments and use-cases. 10.5 As regards apprehension that the subject goods fall out of the purview of the Digital Still Image Video Camera, for the reason that recording time is not limited and in view of the aforementioned circular, it appears that the subject goods is not eligible for the benefit of S. No. 502 Notification No. 50/2017-Cus., dated 30-6-2017. However, the wording used in the said Circular lay emphasis on principal funct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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