Xiaomi Technology India Private Limited Vs Commissioner of Customs (CESTAT Bangalore)
CESTAT Rules Automatic Soap Dispenser Falls Under CTI 8424 Because It Dispenses Rather Than Sprays; CESTAT Allows Appeal on Customs Classification Due to Difference Between Dispensing and Spraying Functions; Soap Dispenser Classified Under Mechanical Appliances Heading Because Product Disperses Liquid Soap; CESTAT Relies on HSN Notes to Hold Automatic Soap Dispenser Outside Scope of CTI 9616.
The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore concerned the classification of an “Automatic Soap Dispenser” imported through three Bills of Entry. The appellant challenged the order dated 26.09.2024 passed by the Commissioner (Appeals), which had upheld the reassessment order dated 17.01.2024 issued by the Deputy Commissioner of Customs. The reassessment classified the imported goods under Customs Tariff Item (CTI) 9616 10 20 instead of CTI 8424 89 90 claimed by the appellant.
The central issue before the Tribunal was whether the imported “Automatic Soap Dispenser” should be classified under CTI 8424 89 90 or under CTI 9616 10 20.
The appellant described the imported product as a sensor-based automatic soap dispenser designed for touchless dispensing of liquid soap in foam form. The product contained an in-built proximity infrared sensor that detects a hand placed under the outlet and dispenses foam in approximately 0.25 seconds. The sensor communicates with a diaphragm pump and motor to regulate the foam output.
