Case Details: L.G. Electronics India Pvt. Ltd. vs. Commissioner of Customs (2025) 34 Centax 321 (S.C.)
Judiciary and Counsel Details
- J.B. Pardiwala & Sandeep Mehta, JJ.
- S/Shri V. Lakshminarayan, Sr Adv., Ms. Neha Choudhary, Umag Motiyani, Ms Nitum Jain, Ayush Agarwal, Ms Medha Sinha, Swastik Mishra, Advs., Ms Charanya Lakshmikumaran, AOR, for the Appellant
- S/Shri V.C. Bharathi, Udai Khanna, Ms Gayatri Mishra, Ms Bharti Tyagi, Advs., Gurmeet Singh Makker, AOR, for the Respondent
Facts of the Case
The appellant imported 2000 units of “G Watch (Smart Watch)” from the Republic of Korea and classified the said goods under CTH 91021900. After claiming the benefit of entry Sl. No.955 of Notification No.152/2000-CUs dated 31-12-2009, the appellant assessed the basic customs duty at the rate of “nil”. However, the Tribunal held that the goods imported were smartwatches. It observed that the appellant’s product could be paired with a companion device running Android and supporting Bluetooth. The companion device had to be connected to mobile data or a Wifi network. The smartwatch could send and receive a text message, user can make and receive telephonic calls of his mobile phone at this product, can download and open any app (application) on the app screen, the home screen can be used as a compass, stopwatch, timer, calibration, barometer and LT meter, the functions similar to that of the watch, have the Google fit app to view the workout reports, it takes tasks using voice commands as it has a built-in Google assistance. However, for the purpose, a data or Wifi connection is required on the companion device and the device must be in a Bluetooth range. Thus, the Tribunal held that the main function of the smartwatch was not just timekeeping or time-watching but to work as a portable/wearable device as an organizer capable of transmitting or receiving data in the form of voice or images. Accordingly, the Tribunal held that the product was a Smart Watch classifiable under 8517 6290 and was not entitled to the benefit of exemption Notification No. 152/2009-Cus.The matter reached the Supreme Court of India.
Supreme Court Held
The Supreme Court held that the Certificate of Origin furnished by the appellant made it very clear that the goods were imported and originated from the Republic of Korea. Even if goods are classifiable under Entry 85176290 of the First Schedule to the Customs Tariff Act, 1975, they would still be entitled to the benefit of Notification 151/2009-Cus., dated 31-12-2009.Since the original Certificate of Origin was not being disputed otherwise, the appellant was entitled to the benefit of Notification 151/2009-Cus.
