Classification of ATM monitors as machine parts prevails over residual monitor heading under tariff rules.

ATM monitors imported for use in automatic teller machines were held classifiable as parts of ATM machines under heading 8473, because Section XVI notes require goods suitable solely or principally for a particular machine to be classified with that machine. The residual heading 8528 for monitors did not prevail merely because the goods had monitor characteristics, since the specific tariff scheme for machine parts governed. The classification dispute was therefore decided in favour of the assessee, and the impugned order was set aside.

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Issues: Whether ATM monitors are classifiable under heading 8473 as parts of ATM machines or under heading 8528 as monitors.

Analysis: The dispute turned on the tariff treatment of monitors imported for use in automatic teller machines. The relevant chapter headings and Section XVI notes showed that parts suitable solely or principally for use with a particular machine are to be classified with that machine, subject to the exclusionary notes in Section XVI. Since the imported goods were admittedly ATM monitors and were used as parts of ATM machines falling under heading 8472, the goods answered the description of parts and accessories under heading 8473. The residual heading 8528 could not prevail merely because the goods were monitors, when the specific tariff scheme for machine parts governed their classification.

Conclusion: The goods are classifiable under heading 8473 as parts of ATM machines and not under heading 8528.

Final Conclusion: The assessee succeeded in the classification dispute, and the impugned order was set aside.

Ratio Decidendi: Where goods are admittedly parts intended solely or principally for use with a particular machine, they are to be classified as parts of that machine under the relevant section notes and not under a more general residual heading.

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