CESTAT: Web Cameras Classified Under Chapter Heading 8473

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in Bangalore has made a significant ruling regarding the classification of web cameras under the Customs Tariff Act. In the case of M/s. Xiaomi Technology India Private Limited, the Tribunal held that web cameras are rightly classifiable under Chapter Heading 8473 and not under Chapter Heading 8525, as argued by the customs department.

Background:

M/s. Xiaomi Technology India Private Limited imported Mi Web Cameras and classified them under Chapter Heading 8473 3099 as parts and accessories of Automatic Data Processing (ADP) Machines. However, the customs department classified the products under Chapter Heading 8525 8010, contending that the web camera imported by the appellant was a standalone item.

Appellant’s Argument:

The appellant argued that Mi Web Cameras consist of a camera lens, a USB plug for connection exclusively to an ADP machine, and a clamping slot. They emphasized that the web camera is solely and principally used with ADP machines for video conferencing, online chatting, etc. Therefore, they claimed that it should be classified under Chapter Heading 8473.

CESTAT’s Decision:

After considering the arguments presented by both parties, the CESTAT bench ruled in favor of the appellant. The Tribunal agreed with the appellant’s contention that web cameras are not digital cameras or television cameras, making them suitable for classification under Chapter Heading 8473. This decision was influenced by a previous case, Hi-Tech Computers vs. Commissioner of Customs, where the Tribunal similarly ruled that web cameras do not fall under Chapter Heading 8525.

Conclusion:

In conclusion, the CESTAT Bangalore held that Mi Web Cameras imported by M/s. Xiaomi Technology India Private Limited are rightly classifiable under Chapter Heading 8473. Therefore, the impugned order classifying them under Chapter Heading 8525 was set aside, and the appeal of the appellant was allowed. This ruling establishes clarity on the classification of web cameras under the Customs Tariff Act, providing guidance for future import declarations and customs proceedings.