{"id":6138,"date":"2025-09-29T17:47:05","date_gmt":"2025-09-29T12:17:05","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6138"},"modified":"2025-09-29T17:47:05","modified_gmt":"2025-09-29T12:17:05","slug":"sc-allows-refund-on-smart-watches-under-india-korea-pta","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/sc-allows-refund-on-smart-watches-under-india-korea-pta","title":{"rendered":"SC Allows Refund on Smart Watches Under India-Korea PTA"},"content":{"rendered":"<pre><strong>Case Details:<a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000408849\/assessee-entitled-to-refund-as-imported-smart-watches-were-eligible-for-concessional-duty-under-india-korea-pta-sc\"> <span class=\"TextRun SCXW245601388 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW245601388 BCX0\">L.G. Electronics India <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW245601388 BCX0\">Pvt.<\/span><span class=\"NormalTextRun SCXW245601388 BCX0\"> Ltd. vs. Commissioner of Customs (2025) 34 <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW245601388 BCX0\">Centax<\/span><span class=\"NormalTextRun SCXW245601388 BCX0\"> 321 (S.C.)\u00a0<\/span><\/span><span class=\"EOP SCXW245601388 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\">\u00a0<\/span><\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>J.B. Pardiwala<\/strong> &amp;<strong> Sandeep Mehta<\/strong>, JJ.<\/li>\n<li>S<strong>\/Shri V. Lakshminarayan<\/strong>, Sr Adv., <strong>Ms. Neha Choudhary<\/strong>, <strong>Umag Motiyani<\/strong>, <strong>Ms Nitum Jain<\/strong>, <strong>Ayush Agarwal<\/strong>, <strong>Ms Medha Sinha<\/strong>, <strong>Swastik Mishra<\/strong>, Advs., <strong>Ms Charanya Lakshmikumaran<\/strong>, AOR, for the Appellant<\/li>\n<li><strong>S\/Shri V.C. Bharathi<\/strong>, <strong>Udai Khanna,<\/strong> <strong>Ms Gayatri Mishra<\/strong>,<strong> Ms Bharti Tyagi,<\/strong> Advs., <strong>Gurmeet Singh Makker<\/strong>, AOR, for the Respondent<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The appellant imported 2000 units of &#8220;G Watch (Smart Watch)&#8221; from the Republic of Korea and classified the said goods under CTH 91021900. After claiming the benefit of entry Sl. <a href=\"https:\/\/www.centaxonline.com\/search?searchData=No.955%20of%20Notification%20No.152%2F2000-CUs&amp;itemType=AP\">No.955 of Notification No.152\/2000-CUs<\/a> dated 31-12-2009<a href=\"https:\/\/www.centaxonline.com\/search?searchData=No.955%20of%20Notification%20No.152%2F2000-CUs&amp;itemType=AP\">,<\/a> the appellant assessed the basic customs duty at the rate of &#8220;nil&#8221;. However, the Tribunal held that the goods imported were smartwatches. It observed that the appellant&#8217;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.<\/p>\n<h2><em>Supreme Court Held<\/em><\/h2>\n<p>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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: L.G. Electronics India Pvt. Ltd. vs. Commissioner of Customs (2025)&hellip;<\/p>\n","protected":false},"author":16,"featured_media":6163,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-6138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SC Allows Refund on Smart Watches Under India-Korea PTA<\/title>\n<meta name=\"description\" content=\"Supreme Court rules assessee entitled to refund as imported smart watches qualified for concessional duty benefit under India-Korea Preferential Trade Agreement.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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