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➢ "As per the decision of Harmonized System Committee (HSC) in its 55th session held in March, 2015 determined HS classification of wrist wearable device ("Smart Watch‟) under CTH 8517.62 and it was mentioned that „Smart Watch‟ is effectively wearable computer. It is a battery operated device in the form of a wrist watch, incorporating a touch sensitive, active matrix, organic light-emitting diode (Amoled) display, a central processing unit (CPU), random-access memory, flash memory, radio transceiver, electronic watch module, motion sensor(accelerometer) agyro-sensor, digital camera module with auto focus, speaker and two microphones. The radio transceiver utilizes the open wireless technology standard (Bluetooth), which enables the device to communicate wirelessly with certain mobile devices, such as mobile phones for cellular networks or tablet computers. The device independently performs functions such as recording and reproducing sound, taking and recording photos and videos, measuring and displaying 31 C/87807/2019 step counts and heart rates apart from displaying time and information embedded in the watch module. Further, as per Notification No.57/2017-Cus. dated 30.6.2017 (copy attached) Smart Watches are classified under CTH 85176290/85176990.

➢ The SCN and the impugned Order are misconceived and void ab-initio because they proceed on the fallacious assumption that "smart watches‟ are covered by the term „watches‟. Watches are classified under CTH 9101. Smart Watches are classified under CTH 8517. Smart watches have a completely different and distinct identity from watches. Unlike watches, smart watches do not contain any watch movements."

We are not in position to agree with above contentions of the learned counsel, for the reason that issue for consideration in the present case is vis a vis the applicability of Section 123 to the smart watches and not the question of determination of correct classification as per Harmonized System or the Customs Tariff Act, or the admissibility of benefit under Notification No 57/2017-Cus. Admittedly the items under seizure are having a watch module which is for displaying the time. In our view the essential character of the item under consideration is that of a watch and is bought and sold as a watch in the trade. Just because certain other functions are inscribed in the said device it will not essentially go beyond the meaning of word watch as used in section 123. Smart watch has been described at "https://www.ebuyer.com/blog/2015/06/what-does-a- smartwatch-do/" stating as follows: