VIVO Mobile India Private Limited Vs Customs Authority For Advance Rulings & Anr. (Delhi High Court)
Delhi High Court held that it is not the technology that defines the product and decides its classification, but it is the product which decides the classification. Thus, since the product imported aligns with the function of a microphone, the same is classifiable under CTH 8518.
Facts- The present appeal under Section 28KA of the Customs Act, 1962 has been preferred by the appellant i.e. Vivo Mobile India Private Limited assailing the order dated 13.12.2023 passed by the Customs Authority of Advance Rulings.
The controversy in this case relates to whether the ‘Integrated Circuit Micro Electro Mechanical System Microphones’ being imported by the appellant under Customs Tariff Heading 8518, specifically Tariff Item 8518 10 00, of the First Schedule to the Customs Tariff Act, 1975, is liable to be classified under CTH 8542, specifically Tariff Item 8542 39 00.
Conclusion- The product in question, being imported by the appellant, is — undoubtedly and concededly — a device that converts sound signals into electrical signals, which aligns with the function of a microphone. Even though the appellant does not specifically state in the ‘Product Functioning‘ section of its application that the device functions precisely as a microphone, it is apparent that this is its primary function. It is also not the appellant‘s contention that the product performs any functions beyond those typically associated with a microphone.
