Xiaomi CESTAT Classifies Automatic Soap Dispensers Under Heading 8424 as Liquid Dispersing Appliance

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal allowed the appeal filed by Xiaomi Technology India Private Limited and held that automatic soap dispensers imported by the company are classifiable under Customs Tariff Item 8424 89 90 as mechanical appliances for dispersing liquids and not under Customs Tariff Item 9616 10 20 as toiletry sprays. 

The Tribunal emphasized the functional distinction between “dispersing” and “spraying” and held that the imported goods did not perform any spraying function contemplated under Heading 9616.