Fitness Tracker Classification

This is a classic “essential character” vs “multi-function device” dispute.

Revenue attempted to re-characterise activity trackers as communication devices based on Bluetooth-enabled data transmission, thereby attracting higher duty under CTH 8517. 

The assessee, supported by expert technical evidence (IIT Bombay), argued that the dominant function remains fitness tracking.

The Tribunal decisively sides with the assessee and holds:

• Primary function test is determinative

• Bluetooth/data transmission is ancillary

• Activity trackers resemble pedometers and measuring devices

• Classification under CTH 9029 1090 upheld

• Revenue’s attempt to elevate connectivity over functionality is rejected 

This ruling reinforces a disciplined application of GRI 3(b) (essential character test) in modern tech products.