TaxTMI 
TaxTMI 
2023 (6) TMI 857
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....ls of Monitors intended for import are as follows: 1. VA 2732 MH - IN 1 (with HDMI and Speakers) 2. VA 2209 - H (with HDMI) 3. VA 2215 - H - IN 1 (with HDMI) 4. VA 2432 - MH - IN 1 (with HDMI & Speaker) 5. VX 3276 - MHD - 3 (with HDMI & Speaker) 6. VA 1903H-2 (with HDMI) 2. In their application, the applicant has inter alia submitted that Monitors are capable of directly connecting to and designed for use with an Automatic Data Processing System (hereafter known as ADPS) of heading 8471 as per Note 6 (E) of Chapter 84; that the ADPS Monitor have Low Emission standards, while monitors designed for other uses have a high emission standard as they are viewed from a distance and are not used for close proximity over a prolonged period of time like desktop monitors; that the additional High-Definition Multimedia Interface (HDMI) port and Speaker available in the subject goods is to enrich viewers experience; that the HDMI has an aspect ratio of 16:9 so the picture is rectangular and HDMI has a higher resolution of 1920 X 1080 pixels as compared to the analog signals having 704 x 480 pixels and it receives signals digitally, thereb....
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....deo monitors. Further, they have bought to notice the absence of guidelines for technical features like HDMI port or Speaker, which are currently built-in the subject goods intended for import. In this regard they have opined that the absence could be on account of the fact that the said features came into existence at a later date and technology has greatly evolved since issue of the said Circular. The moot question as per the applicant is whether presence of HDMI Port and Sound Capabilities through speakers in the subject goods, eliminates its prime function of being principally designed to be used with ADPS, thus making eligibility benefit of exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended, inadmissible. In support of their claim, applicant has relied upon the case of Benq India Private Ltd. by the hon'ble CESTAT Delhi, wherein in the case of Projector, Hon'ble Tribunal held that mere presence of multiple ports does not undermine the basic nature of the goods, namely being Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471. Further, reference has been made to a j....
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....n the hearing. 5. Subsequently the applicant submitted a rejoinder dated 02.02.2023, providing additional information, distinguishing monitors capable of accepting signal from CPU of an ADPM and providing Graphical presentation of the Data processed. The same is verbatim reproduced below: Sr. No Requirements Actual Goods 1. Usually display signals of Graphics Adaptors Viewsonic models have Graphic ports from Advanced Micro Devices, INC 2. Do not have channel selector or video tuner Videosonic models mentioned do not incorporate a channel selector or Video tuner 3. Monitor are Fitted with connector characteristic of data processing systems (EG RS-232C, DIN, D-SUB, VGA, DVI, HDMI or DP) Viewsonic listed model have both VGA and HDMI connectors 4. Viewable image size does not generally exceed 76 CMS (30 inches) Viewsonic-except for VX3276-MHD-3 Model which is 32 inches, rest all models are below 30 inches 5. Display pitch size (visually smaller than 0.3 mm) suitable for close proximity viewing Viewsonic model VX 3276-MHD-3 alone exceeds 0.3 MM at 0.364 MM. rest all models are below 0.3 MM & VA 2732- MHIN-1 is at 0.31 MM 6. ....
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....ed upon in light of legal framework governed by the Customs Tariff Act, 1975, specifically Chapter 84 & 85, its corresponding Chapter notes, supplementary notes and relevant HSN explanatory notes. In the absence of comments from jurisdictional authority on subject goods, I proceed to pronounce ruling on the issue, on basis of information available on record. The subject goods for which advance ruling has been sought, its technical specifications, characteristics, functions etc. have been broadly mentioned in aforesaid paras. The issue involved for advance ruling is, if the subject goods namely "'VIEW SONIC Brand LCD Monitor", which are described as Monitors capable of directly connecting to and designed for use with an Automatic Data Processing System are classifiable under Chapter subheading 8528 52 00 of Customs Tariff Act, 1975 or not, and whether they attract duty exemption benefit under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended, or not. 6 Based on the contents of the application and further submissions I find that the subject goods have graphic ports from Advanced Micro Devices, INC, and have built-in VGA and HDMI connectors. The viewa....
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....itors from other types of Television/Video monitors that could be used as guidance for assessment and examination of the said goods. As illustrated in the chart, some of the technical features that distinguish Computer monitors are that they do not incorporate a TV Tuner Card instead have DVI and/or mini D-Stub connectors to connect to the CPU; that they have few ports like VGA, DVI, USB to receive signals from CPU or storage devices; that they receive RGB signals and do not possess separate audio circuits,; that AR are characterized by low emission standards and have various ergonomic features such as swivel, tilt mechanism, glare free and flicker free surfaces to enable close proximity and prolonged viewing; that the display pitch size is usually 0.28 mm or less and the horizontal frequency is 15 to 155KHZ; that they do not contain components like audio amplifying system, remote function, control panel functions, selection panel with buttons for volume, channel etc., on display unit and wall mounting facility. On examining the inclusions and exclusions of features and specifications as stated in para 6, with the clarification on technical features as provided in the CBIC Circu....
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....s, inter alia, monitors, that are sub-categorized as "cathode-ray tube monitors" and, "other monitors". The sub heading, "other monitors " under 8528 52 00 states, "Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 ". Further, in terms of HSN Explanatory Notes to heading 8528, "This group includes monitors which are capable of accepting, a signal from the central processing unit of an automatic data processing machine and provide a graphical presentation of the data processed. These monitors are distinguishable from other types of monitors and from television receivers. The monitors of this group may be characterised by the following features: (i). They usually display signals of graphics adaptors (monochrome or colour) which are integrated in the central processing unit of the automatic data processing machine; (ii). They do not incorporate a channel selector or video tuner; iii. They are fitted with connectors characteristic of data processing systems (e.g., RS-232C interface, DIN, ID-SUB, VGA, DVI, DP (display port) connectors); (iv). The viewable image size of these monitors does ....
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....at enables receiving signal from a CPU or storage device and has a HDMI port which is a proprietary audio/video interface for transmitting data digitally. Consequently, it is seen that the subject goods meet the criteria as laid down in the relevant chapter note, reproduced above, so as to be regarded as being part of an automatic data processing system falling under CTH 8471. It is seen that Chapter note 6(C) is to be read with paragraph (D) & (E). Paragraph 6(D) inter alia specifies, that heading 8471 does not cover, "Monitors, not incorporating television reception apparatus" when presented separately. And paragraph 6 (E), states that, "Machines 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. I find that subject goods can be regarded as being part of an automatic data processing system as it meets all of the conditions specified in Chapter notes 6(C) of Chapter 84. Further, the absence of built in USB driver, SD card external storage connectivity and touch scree....