In re Apple India Private Limited (CAAR Mumbai)
Apple India Private Limited filed an application before the Customs Authority for Advance Ruling (CAAR), Mumbai, seeking a ruling on the classification of Apple Watch bands (leather and non-leather). The application arose after earlier advance ruling proceedings, a subsequent show cause notice, and an Order-in-Original that reclassified non-leather bands under Heading 9113. The earlier CAAR ruling dated 10.03.2025 had confirmed the classification of Apple Watch itself under tariff item 8517 62 90 but declined to rule on watch bands due to pending adjudication. This refusal, along with the Order-in-Original, was challenged before the Bombay High Court, which quashed both orders insofar as they related to Apple Watch bands and remanded the matter to CAAR for fresh consideration on merits.
On remand, CAAR examined whether Apple Watch bands could be treated as “parts” of Apple Watch under Chapter 85 or whether they were classifiable as watch straps/bands under Chapter 91. The applicant argued that both leather and non-leather bands were essential components enabling full functionality of the watch and were uniquely designed for exclusive use with Apple Watch, relying on Section Note 2(b) of Section XVI and earlier advance rulings. It was also contended that non-leather bands should fall under Heading 8517 as parts of a communication device, while leather bands should fall under Heading 4205 as articles of leather.
