TaxTMI 
TaxTMI 
2023 (6) TMI 657
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....nformation regarding the same are as follows: SI No. Panel Size Product No Product Description 1 VIEW BOARD 55" INTERACTIVE FLAT PANEL IFP5550-3 VIEWSONIC IFP5550-3 /55" INTERACTIVE DISPLAY SYSTEM 2 IFP555O-5 VIEWSONIC IFP5550-5 /55" INTERACTIVE DISPLAY SYSTEM 3 VIEW BOARD 65" INTERACTIVE FLAT PANEL IFP6530 VIEWSONIC IFP6530(VS17775) /65" INTERACTIVE DISPLAY SYSTEM 4 IFP6532 VIEWSONIC IFP6532 /65" INTERACTIVE DISPLAY SYSTEM 5 IFP6532-2 VIEWSONIC IFP6532-2 /65" INTERACTIVE DISPLAY SYSTEM 6 IFP6532-B VIEWSONIC IFP6532-B /65" INTERACTIVE DISPLAY SYSTEM 7 IFP6550 VIEWSONIC IFP6550 /65" INTERACTIVE DISPLAY SYSTEM 8 IFP6550-2 VIEWSONIC IFP6550-2 /65" INTERACTIVE DISPLAY SYSTEM 9 IFP6550-3 VIEWSONIC IFP6550-3 /65" INTERACTIVE DISPLAY SYSTEM 10 IFP6550-5 VIEWSONIC IFP655O-5 /65" INTERACTIVE DISPLAY SYSTEM 11 IFP6552-1A VIEWSONIC IFP6552-1A /65" INTERACTIVE DISPLAY SYSTEM 12 IFP6552-1B VIEWSONIC IFP6552-1B /65" INTERACTIVE DISPLAY SYSTEM 13 VIEW BOARD 75" INTERACTIVE FLAT PANEL IFP7530 VIEWSONIC IFP7530(VS 17776) /75" INTER-ACTIVE DISPLAY SYSTEM 14 IFP7532 VIEWSONIC IFP7532 /75" INTERACTIVE DISPLAY SYSTEM 15 IFP7532-2 VIEWSONIC IFP7532-2 /....
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....as calculator, stopwatch, buzzer, etc. The subject goods have slots for HDMI, VGA, LAN, USB, RS232 and audio ports, along with a high internal storage capacity. They are used in classrooms for teaching and in companies for presentations, meetings, etc. Their physical features include being wall mounted, not incorporating tilt, swivel or height adjustment mechanism and being available in different sizes ranging from 24 inches to 98 inches. Internet can be accessed by connecting them to a dongle via USB ports or by the use of a LAN cable. These Interactive Display Systems can also be connected to laptops, and input can be given either from the Interactive Display Systems to the laptop or vice versa. The subject goods allow user to record and share lectures/ notes/ presentations via email or QR codes. Further being cloud enabled, user can upload the notes on a pre-set cloud storage. 2.1 Building their argument on functionality and physical characteristics of the product, the applicant has submitted that the subject goods are not portable as they weigh more than 10 kg and their dimensions viz. 55",65", 75", 86" and 98" make it illogical and unviable for daily transit. Further, they ha....
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....ines is capable of storing a processing programme; is freely programmable; performs arithmetical computations; and can execute a processing programme by logical decision during the processing, without ii. They are machines which, by logically interrelated operations performed in accordance with pre-established instructions (program), furnish data which can be used as such or, in some cases, serve in turn as data for other data processing operations. iii. Automatic data processing machines may comprise in the same housing, the central processing unit, an input unit (e.g., a keyboard or a scanner) and an output unit (e.g., a visual display unit), or may consist of a number of interconnected separate units. iv. In order to be classifiable as an ADPM under Chapter 84, Note 5(A) to Chapter 84 which provides for the essentials of what constitutes an ADPM, needs to be fulfilled. Accordingly, the following submissions have been made by the applicant to demonstrate that the subject goods fulfil all the criteria of Note 5(A) to Chapter 84: "5(A) For the purposes of heading 8471, the expression "automatic data-processing machines" means machines, capable of: (1) storing the processi....
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....ds are IFPs having in-built CPU and RAM for executing programs. It has high storage capacity and are loaded with Android operating software. They are highly sophisticated machines which perform a plethora of functions beyond being used as traditional whiteboards in classrooms. They are not merely used for display of the information or presentation but are also capable of complex operations. Therefore, the goods are admittedly much more than mere display devices and cannot be classified under Heading 8528 as "Monitors". 3. In relation to the subject goods, the questions on which advance rulings have been sought are as follows:- a. Whether Interactive Display Systems (View Board) being imported by the Applicant are classifiable under the Tariff Item 8471 4190 of the Customs Tariff of India? b. If the answers to the above question is in the negative, then what would be the correct classification of the Interactive Display Systems (ViewBoard) under the Customs Tariff of India? 4. The applicant intends to import the said goods through the jurisdiction of Customs Commissionrates mentioned hereunder: 1. The Commissioner of Customs (Imports), Mumbai II, Jawaharlal Nehru Custom Hous....
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...., Mumbai in respect of Application No. CAAR/CUS/APPL/82/2022 - O/o Commr-CAAR-MUMBAI filed M/s. Compuage Infocom Ltd., Mumbai with regard to similar goods, namely, "Optoma Creative Touch 3-series Interactive Flat Panel (IFP) (Model - 3652RK, 3752RK, 3862RK), on the ground that the same would be classifiable under CTI 8528 5900 and not under CTI 8471 4090. 4. Also, this Commissionerate recommended for classification of the similar goods, namely, "Optoma Creative Touch 3-series Interactive Flat Panel (IFP) (Model - 3652RK, 3752RK, 3862RK), under CTI 8528 5900 as against the applicants claim under CTI 8471 4090 in respect of application for advance ruling filed before the Customs Authority for Advance Rulings, New Delhi by M/s Supertron Electronics Pvt. Ltd. and the final ruling in this case is yet to be delivered. 5. Apart from the above, in view of divergent assessment practices are being adopted by different customs locations regarding the classification of the said Interactive Flat Panel, this Commissionerate has requested the concerned Principal Commissioner of FAG -Gr.5E at INMAA4 for taking up the matter with NAC. In view of the above reasons, this Commissionerate of the co....
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....processing system; (ii) it is connectable to the central processing unit either directly or through one or more other units; and (iii) it is able to accept or deliver data in a form (codes or signals) which can be used by the system. Separately presented units of an automatic data processing machine are to be classified in heading 8471. However, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of (ii) and (iii) above, are in all cases to be classified as units of heading 8471. (D) Heading 8471 does not cover the following when presented separately, even if they meet all of the conditions set forth in paragraph (C): (i) printers, copying machines, facsimile machines, whether or not combined; (ii) apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network). (iii) loudspeakers and microphones, (iv) television cameras, digital cameras and video camera recorders, (v) monitors and projectors, not incorporating television reception apparatus. (E) Machines incorporating or working in conjunction with an....
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....g machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. 6. The subject goods are not merely an ADPM and in fact it has many other additional inbuilt features with the main purpose to interact through display as per the intended use i.e., training, conferences, educational purposes, teaching via e-learning etc. The goods are mainly Display devices incorporating and working in conjunction with an automatic data processing machine i.e., inbuilt CPU. Therefore, the primary function of the goods is to display the given input data/ images/pictures/videos etc. 7. ADP machines performing specific functions other than Data processing are required to be classified as per their respective functions. Even though the functions of an ADP machines are inbuilt, the subject goods viz., Interactive Flat Panels being primarily used as Display System cannot be considered as a simple input or output device and is to be identified with its primary function of display by applying Note 6 (E) of Chapter 84 Note as mentioned above. 8. As per Rule 1 of the General Rules....
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....alities, touch screen, write or draw on screen etc. 13. The Hon'ble Supreme Court in the case of Commissioner of Customs, Bangalore Vs. N.L. Systems (India) P. Ltd.-2010 (256) ELT 173 (SC) held that PXI Controller which was a computer based instrumentation product and capable of being controlled by a Personal Computer/Laptop but is not a PC/laptop-principal function of controllers is executing, control, algorithms for real- time monitoring and control of devices - controller performs functions in addition to data processing what is imported is a system containing on ADPM and if the contention of the Importer herein is accepted, it would mean that every machine that contains an element of ADP would be classifiable as an ADP machine under Chapter 84 which would completely obliterate the specific function test and the concept of functional unit. Hon'ble Court upheld the classification of the department and held that goods were rightly classified under Chapter 90. The same principle applies to this case. 14. Hon'ble Supreme Court in the case of Deena Jee Sansthan vs Commissioner of Central Excise, Meerut-2019 (365) ELT 353 (SC) held that the classification of product should be by a....
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....plication, reply from jurisdictional Commissionerate, rejoinder of the applicant, oral submissions made during the hearing and the legal framework governing the classification of proposed imports in the form of relevant Chapter notes, Section notes and HSN Explanatory Notes to the respective Chapter headings. I proceed to deliberate upon the issue on the basis of information available on record. The subject goods, 'Interactive Display System (ViewBoard)' has an in-built Central Processing Unit, RAM for execution of programs, pre-installed operating system namely Android 7.0, Open Pluggable Specification Slot to download and install new programmes and operate other operating systems such as Windows, etc. Additional features include, slots for HDMI, VGA, LAN, USB, RS232 and audio ports, high internal storage capacity, UFT (Ultra Fine Touch) Technology to offer more precise writing and faster processing time, air quality sensor, germ resistant screen, two touch pens (stylus), remote control, 70-80% glare free surfaces with a flicker free display, multi-touch interaction, handwriting recognition, freehand touch, go typing and applications such as calculator, stopwatch, buzzer. They are....
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....id Note. Further, para (E) states that machines, instruments or apparatus incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. iv. The description mentioned in the application is "Interactive Flat Panel", thus the main function of subject goods is interaction through display. Essentially, it acts as a display monitor, enabling one to select, to view documents, videos and even web links on a larger scale. As per jurisdictional Commissionerate, Chennai II, the impugned goods cannot be considered as an Automatic Data Processing machine under CTH 8471, instead they are classifiable under sub-heading 8528 5900 which deals with other monitors. 7.2 The applicant provided an Annexure-wise response to the comments from jurisdictional Commissioner of Customs, Chennai-II(Import). Same is re-iterated below: Inputs on Annexure-A That the Chennai Commissionerate has filed an appeal against one Advance Ruling issued, or that they have given adverse comments in respect of another pen....
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....ed to the present product in question. The product in question is not merely a "display board". The subject goods, on the other hand, are highly sophisticated machines which perform a plethora of functions beyond being used as traditional whiteboards in classrooms. These are not merely used for display of the information or presentation but are also capable of complex operations. That they are not merely "display products" is also evident from the huge difference in price between the imported product and merely display boards or monitors available in the market. The imported product is a superior product and complex ADP System. The same is rightly classifiable under Heading 8471. 8. I have examined the comments forwarded by Commissioner of Customs, Chennai-Il (Import) and the rejoinder submitted by the applicant. It is observed that the Jurisdictional Commissionerate has described the subject goods as "Interactive Flat-Panel Display (IFPD)' that is a large-format touchscreen display ideal for meeting rooms and collaborative spaces; that is a replacement for clunky or outdated projector technology with a higher-quality display, enhanced connectivity, and built-in software solution....
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....means machines, capable of (1) storing the processing program or programs and at least the data immediately necessary for the execution of the program; (2) being freely programmed in accordance with the requirements of the user, (3) performing arithmetical computations specified by the user; and (4) executing, without human Intervention, a processing program which requires them to modify their execution, by logical decision during the processing run." In order to merit classification under heading 8471, it is clear that subject goods need to satisfy the requirements of note 6(A) to chapter 84. Therefore,, there is a need to examine whether the features and specifications of the subject goods under consideration meet the criteria as laid down in the relevant chapter note reiterated above. 8.2 It is understood that Automatic data processing (ADP) machines have storage capability and also stored programs which can be changed as per the performance of tasks. Digital machines process data in coded form. A code consists of a finite set of characters (binary code, standard six-bit ISO code, etc.). The data input is either automatic through the use of data media such as magnetic ....
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....ts that are to be excluded from heading 8471, even if they can be classified as part of an ADP system. Note 6(E) to chapter 84 mentions that a machine incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or failing that, in residual headings. In a standalone configuration, the devices under consideration process applications compatible with the various Android operating system join wired or wireless networks, access and manipulate folders and files, and perform general computing tasks such as Internet browsing, email, and editing office documents. Therefore, from the working and features of the impugned goods, it appears that these are neither units of ADP machines nor ADP machines presented in the form of systems, but ADP machines themselves. 8.4 ADP machines are categorized in CTH 8471 as per one dash subheading as follows: 1st one-dash subheading: Portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display 2nd one-dash....