TaxTMI 
TaxTMI 
Walltop computer to be classified as ‘automatic data processing machine’ under Customs Tariff heading 8471 41 90
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....alltop computer to be classified as ‘automatic data processing machine’ under Customs Tariff heading 8471 41 90<br>By: - Bimal jain<br>Goods and Services Tax - GST<br>Dated:- 24-1-2023<br><br>The AAR, Karnataka in the matter of IN RE: M/S. VIRTULIVE TECHNOLOGIES PVT. LTD. - 2022 (12) TMI 951 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA has held that, a walltop computer is neither a micro-compute....
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....r nor a large computer and to be classified as an automatic data processing unit covered under Customs Tariff heading 8471 41 90. Facts: M/s Virtulive Technologies Pvt. Ltd. ("the Applicant") is engaged in the manufacturing of a Walltop Computer named 'Roombr' ("the Impugned Product"), which aims to extend computing power to an interactive wall to make office meetings and classroom teaching easi....
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....er. The Applicant has contended that the Impugned Product is an Automatic Data Processing machine and has a central processing unit i.e. a processor-based motherboard with RAM and storage, an input unit i.e. an IR pen and a Bluetooth keyboard and an output unit i.e. a projected interactive display and hence, the Impugned Product is classifiable under tariff heading 8471 41 90 of Chapter 84 of the....
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.... Customs Tariff Act, 1975 ("the Customs Tariff Act"). The Applicant has sought an advanced ruling regarding classification of the Impugned Product. Issue: Whether the Impugned Product is covered under tariff heading 8471 of the Customs Tariff Act? Held: The AAR, Karnataka in IN RE: M/S. VIRTULIVE TECHNOLOGIES PVT. LTD. - 2022 (12) TMI 951 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKAhas held as ....
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....under: * Noted that, the Impugned Product can perform all of the tasks listed in Note (6)(A) to Chapter 84 of the Customs Tariff Act. As a result, it perfectly fits into the category of automatic data processing machines. * Observed that, the Impugned Product has a central processing unit, an input unit and output unit as mentioned in the explanatory notes pertaining to tariff heading 8471 of ....
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....the Customs Tariff Act. Further, the Impugned Product is covered under the category of automatic data processing machines. * Stated that, the sub-classification of the Impugned Product will be classified as 'others' under tariff heading 8471 41 90 as the Impugned Product is neither a micro-computer nor a large computer. * Held that, the Impugned Product is classifiable under tariff heading 847....
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....1 41 90. Relevant Provisions: Note (6)(A) to Chapter 84 of the Customs Tariff Act (w.e.f. January 1, 2022): "For the purposes of heading 8471, the expression "automatic data processing machines" means machine capable of : (i) storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme (ii) being freely programmed....
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.... in accordance with the requirements of the user; (iii) performing arithmetical computations specified by the user; and (iv) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run;" Tariff heading 8471 41 90 of the Customs Tariff Act: "Tariff Item Description Unit Rate of Duty Preferential....
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.... Area Rate 8471 AUTOMATIC DATA PROCESSING MACHINES AND UNITS THEREOF; MAGNETIC OR OPTICAL READERS, MACHINES FOR TRANSCRIBING DATA ON TO DATA MEDIA IN CODED FORM AND MACHINES FOR PROCESSING SUCH DATA , NOT ELSEWHERE SPECIFIED OR INCLUDED 847141 Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined : 84714110 Micro computer u ....
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.... Free 84714120 Large or main frame computer u Free 84714190 Other u Free" (Author can be reached at [email protected])<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....