TMI Blog2004 (9) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... be generally equipped with an optical viewfinder, a liquid crystal display (LCD), or both. In the present case, admittedly, the web camera is functioning as a part with the Computer. It cannot function independently. It does not have a viewfinder nor does it have memory which is a feature in Digital camera. In HSN Explanatory Notes at page 1669, states that the Digital camera is akin to Video camera and has all its features. Although the WCO Committee has made various observations pertaining to the web camera having the features of Digital camera, it also clearly describes that in many ways web camera is a bare bone version of a full version digital camera. It is not meant for mobile use. This explains the lack of an inbuilt power supply and storage. The web camera depends on the PC for both these requirements i.e. of power and storage. Therefore the findings of WCO Committee does not support the revenue at all for specific classification purpose. Web Camera may have features of Digital Camera in some aspects but it is not Digital Camera per se. Although the WCO Committee have noticed certain features of Digital camera and Web camera and according to their Minutes of Meeting mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines of Heading Nos. 84.69 to 84.72. The Department has considered the item to be "Digital Camera" under sub-heading 8525.40 after amendment of tariff which reads "Still image video cameras and other video camera recorders; Digital cameras". C/62/2003 : 4. This appeal arises in Order-in-Appeal No. 81/2003-Cus., dated 24-2-2003 which relates to refund of duty paid under protest on PC Camera as the appellants have claimed the classification of the item under sub-heading 8473.30 as parts and accessories for machines of Heading 84.71, i.e. parts and accessories for Computer suitable for use solely or principally with machines of Headings 84.69 to 84.72. However, the Department has rejected the plea and has classified the item under heading 8525.40 as "Still image video cameras and other video camera recorders, Digital cameras." In the finding recorded by the Commissioner (Appeals) in Orders-in-Appeal No. 9/2003-Cus., dated 14-1-2003 and No. 81/2003-Cus., dated 24-2-2003, he has considered both the items to be falling under sub-heading 8525.40 on the reasoning that the item is a "Digital Camera" and in terms of deliberations of WCO, Note 1(e) to Chapter 84 which was amended to specifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to various equipments such as TV, VCR and one of the cables among them can be connected to the ADP machine. The Web camera has a built in cable which eminates from inside This cable cannot be separated from the unit (web camera) this can only be connected to an ADP machine, and not to any other machines. 5. Many digital cameras may also function as web camera. Web camera cannot function as digital camera under any circumstances. 6. Digital camera come with either LCD display or view finder to preview the image which is to be captured. In web camera there is no LCD display or view finder in a web camera. 7. Digital camera have their own power supply like they have chargeable or re-chargeable batteries or draw power through an eliminator/external power supply. Web camera does not have its own power supply but instead it totally depends upon ADP machine for power supply. 8. Digital cameras has its own independent storage media like a floppy/smart card/ memory card/memory stick and some have built in memory. Web camera does not have any sort of built in memory neither any memory can be inserted or added to it. 9. Digital camera is useful at anytime even without connecting to ADP ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as such classifiable under heading 8473.30 as parts and accessories and machines of heading 8471. The learned Counsel therefore also relied on HSN Notes at page 1575 under heading 8471 and page 1576-1577. At page 1577, HSN Notes read as follows - "A unit is to be regarded as being a part of a complete digital data processing system, if it satisfies the following conditions : (a) It is of a kind solely or principally used in an automatic data processing system; (b) It is connectable to the central processing unit either directly or through one or more other units; and (c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system. The interconnections may be made by material means (e.g., cables) or by non-material means (e.g., radio or optical links). In accordance with Note 5(D) to this Chapter, printers, keyboards, X-Y co-ordinate input devices and disc storage units which satisfy the conditions of items (b) and (c) above, are in all cases to be classified as constituent units of data processing systems". He submitted that it specifies the criteria (a), (b) (c) extracted above. Therefore it has to be classified under heading 8475.30 as part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith still image video camera and other video camera recorders. She pointed out that the judgment referred in case of Karamchand Thapar Bros.(C.S.) Ltd. v. Collector of Customs, Bombay - 1994 (71) E.L.T. 619 (Tribunal) is pertaining to earlier period and not the period when web camera classified under heading 8485.70. 7. On a careful consideration of the submissions made by both the sides, we notice from the extracted portion of the difference between Web Camera and Digital Camera that the web camera is different from the Digital camera even in terms of description in HSN Explanatory Notes at Page 1669 under Section XVI 85.25. The specific entry of the Digital Camera was brought out after amendment dated 1-3-2002 under heading 8525.40 under various descriptions like "Still image video cameras and other video camera recorders". Admittedly, the item cannot be considered as video camera as video camera recorder has been placed along with the Digital camera. The Digital camera should be generally equipped with an optical viewfinder, a liquid crystal display (LCD), or both. In the present case, admittedly, the web camera is functioning as a part with the Computer. It cannot function inde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a and other spares/accessories also fall under Heading 84.71 in terms of Note 4 of Section XVI is a correct order which is required to be followed to a situation prior to and subsequent to the amendment. We are of the considered opinion that only the Digital camera which keeps in company into Video Camera would be classifiable under heading 8525.40 whereas the web camera would be classifiable under chapter 8473.30 or 84.71. The appellants succeed in their appeals No. C/26/2003 and C/62/2003 and the same is allowed. C/188/2001 : 8. The Revenue is aggrieved with the Order-in-Appeal No. 18/2001-Cus. dated 25-7-2001 wherein the Commissioner (Appeals) has recorded his finding in Para 4 which reads as under - "4. I have carefully gone through the submissions made by the appellants in the grounds of appeal as well as at the time of personal hearing. It is observed that the lower authority has held in his order that the proper classification of the product viz., web camera imported by the appellants would fall under chapter heading 9006.59 of the Customs Tariff Act, 1975. The appellants, in their appeal have submitted that the lower authority has grossly erred in classifying the product un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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