Computer monitor classification turns on essential character and intended use; HSN Notes support Heading 84.71 over video monitor entry.

Computer monitors were classified as output units of automatic data processing machines under Heading 84.71, not as video monitors under Heading 85.28. The HSN Explanatory Notes were applied to distinguish the competing headings by signal source, connector type, bandwidth, scanning frequency, electromagnetic emission, and intended use. The product's essential character was that of a computer monitor as cleared from the factory, and possible later modification for television use or other incidental use did not control classification. The absence of an express reference to computer monitors in Heading 84.73 was treated as immaterial where Heading 84.71 properly covered the goods.

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Issues: Whether the impugned goods, being computer monitors, were classifiable under Heading 84.71 as output units of automatic data processing machines or under Heading 85.28 as video monitors.

Analysis: The HSN Explanatory Notes distinguish display units of automatic data processing machines from video monitors on the basis of signal source, connector type, bandwidth, scanning frequency, electromagnetic emission, and intended use. On the facts, the product was designed to function as a computer monitor and was to be assessed as cleared from the factory in that form. Its possible modification for use as a television receiver, or incidental other uses, did not govern its classification. The absence of an express mention of computer monitor under Heading 84.73 was held to be immaterial in view of the proper classification under Heading 84.71 as an output unit of a computer.

Conclusion: The goods were held classifiable under Heading 84.71 and not under Heading 85.28. The classification adopted by the lower authorities was set aside, and the appeal was allowed in favour of the assessee.

Ratio Decidendi: For tariff purposes, a product must be classified according to its essential character and intended function as cleared, and the HSN Explanatory Notes to the relevant heading are decisive where they specifically distinguish the competing entries.

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