“G-Mobile Devices Pvt. Ltd” Classification Dispute of Bluetooth

The Principal Bench of the CESTAT delivers a detailed and jurisprudentially significant ruling on customs classification of Bluetooth-enabled audio devices.

Rejecting the importer’s attempt to classify wireless earphones under Heading 8517 as transmission apparatus, the Tribunal applies the principles laid down by the Supreme Court in Welkin Foods and concludes that Heading 8518, an entry specifically covering headphones and earphones, squarely governs the goods. 

The Tribunal emphasises that Bluetooth functionality is merely a technological medium for audio delivery and does not alter the essential character of the goods as sound reproduction devices. 

However, while upholding classification and duty demand on merits, the Tribunal sets aside invocation of extended limitation and penalty, holding that the dispute was interpretational and lacked intent to evade duty.