Purpose & Function Of Product Is Relevant For Classification Under 'Customs Tariff' Heading, Not Tech Used In Such Product: Delhi High Court

The Delhi High Court held that the classification of a product under the Customs Tariff Heading (CTH) should be based on the product’s purpose and function, not the technology used. The case involved Vivo India’s appeal against the Customs Authority of Advance Rulings’ (CAAR) decision to classify ‘Integrated Circuit Micro Electro Mechanical System Microphones’ under CTH 8518, which pertains to ‘Microphones and stands therefor.’ Vivo argued for classification under CTH 8542, which covers ‘Parts’ and is exempt from customs duty. The court found that the product’s core identity as a microphone, despite using MEMS technology, determined its classification. The court upheld CAAR’s decision, emphasizing the importance of the product’s primary function in classification.