TaxTMI 
TaxTMI 
2023 (9) TMI 826
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.... duty as the goods were declared to be and, as reported by examining officers, to be utilized in assembly of 'ATM machines' thereby excluding coverage within the description corresponding to tariff item 8473 50 00 of First Schedule to Customs Tariff Act, 1975 and as 'monitors' in the tariff enumerate did not offer latitude of classification elsewhere. 2. According to Learned Counsel for appellant, the imported goods, being 'displays' that find deployment across similar products and narrowed down for use in 'ATM machines' assembly only after local customization, hardly bear resemblance to 'monitor' as perceived by customs authorities and, according to him, a contention that had not been considered by the lower authorities. He pointed out that note 2(a) and 2(b) of section XVI in First Schedule to Customs Tariff Act, 1975 should have guided the classification before being subjected to comparison between rival descriptions for ascertaining the most apt. Reliance was placed on the decisions of the Hon'ble Supreme Court in Hindustan Ferodo Ltd v. Collector of Central Excise [1997 (89) ELT 16 (SC)] and in HPL Chemicals Ltd v. Commissioner of Central; Excise, Chandigarh [2006 (197) ELT....
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....no evidence. The onus was not discharged. Assuming therefore, the Tribunal was right in rejecting the evidence that was produced on behalf of the appellants, the appeal should, nonetheless, have been allowed.' and in re HPL Chemicals Ltd that '28. This apart, classification of goods is a matter relating to chargeability and the burden of proof is squarely upon the Revenue. If the Department intends to classify the goods under a particular heading or sub- heading different from that claimed by the assessee, the Department has to adduce proper evidence and discharge the burden of proof. In the present case the said burden has not been discharged at all by the Revenue......' making it clear that, in the scheme of classification, it is for customs authorities to establish the claim of independent classifiability without the crutch of doubts cast on the fitment of the classification claimed by importer. Therefore, in the scheme set out by the above decisions, we are merely required to ascertain if the imported goods are 'monitors' within the ambit of the heading of the Explanatory Notes to Haramonised System of Nomenclature (HSN). We must, however, add a cautionary note t....
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.... four stage franking machines, ticket booking/issuing machine, Micro computer/PC, Mainframe computer, hectograph duplicating machine and coin sorting machine. This just appeared more of an afterthought to justify their declared classification entitling them to a NIL rate of duty. 3. However LCD monitors are specifically classifiable under 85285900 as "Other monitors". The importer's contention that these goods are rightly classified under 84735000 as these find multiple applications as stated above. So from their initial contention that the goods were exclusive parts of ATM the importers later changed their stand that the goods could he used as monitors for other applications such a franking, duplication, coin sorting etc. 4. Reference must also be made to the General Rules for the Interpretation of the Tariff wherein Rule 1 states that "classification shall be determined according to the terms of the hearings and any relative section or chapter notes, provided such headings or notes do not otherwise require according to the other provisions listed later. In other word, specific headings will have preference over General heading. So when LCD monitors are speci....
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....any exclusion. Rule 1 of General Rules for Interpretation of Tariff is very clear that classification will decided according to terms of heading. Contrary to the importer's claim that Rule 1 nowhere specifies that specific heading will have primacy , it makes it amply clear that specific heading will prevail over general heading. A similar matter of monitors has been examined and decided in the case of COMMISSIONER OF CUS., MUMBAI Versus VIKING INTEGRATION PROJECTS (P) LTD reported in 2003 (155) E.LT. 179 (Tri. - Mumbai) by CEGAT, WEST ZONAL BENCH, MUMBAI, which has held in para 5 as - " GIR 1 itself states that classification shall be determined according to the terms of a heading. GIR 3(a) states that the heading which provides most specific description shall be preferred to a heading providing a more general description. A combined reading of GIR 1 and GIR 3(a), leaves no doubt that all video monitors have to be classified under Heading 85.28. The Commissioner (Appeals) has applied GIR 3(c) which says that only when goods cannot be classified with reference to GIR 3(a) or GIR 3(b) then they have to be classified under the heading which occurs in last numerical order....
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.... of ATM and of similar machines as they are specially designed for use with such machines and therefore have to be classified as parts as per the provisions of Section Note 2(b) of Section XVI. The said Section Note reads as under: "2. Subject to Note 1 to (his Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85. parts of machines (not being parts of the articles of heading 8484, 8544. 8545, 8546 or 8547) are to be classified according to the following rules : (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473. 8487, 8503, 8522. 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517: (c) ....
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....asts). Monitors, projectors and television sets utilize different technologies, such as CRT (cathode-ray tube). LCD (liquid crystal display), DMD (digital micromirror device), OLED (organic light emitting diodes) and plasma, to display images, xxxxxxxxxx (A) MONITORS OF A KIND SOLELY OR PRINCIPALLY USED IN AN .AUTOMATIC DATA PROCESING SYSTEM OF HEADING 84.71 xxxxxxxxxx (B) MONITORS OTHER THAN THOSE OF A KIND SOLELY OR PRINCIPALLY USED IN AN AUTOMATIC DATA PROCESSING SYSTEM OF HEADING 84.71 This group includes monitors which are receivers connected directly to the video camera or recorder by menas of co-axial cables, so that all the radio-frequency circuits are eliminated. They are used by television companies or for closed-circuit television (airports, railway stations, factories, hospitals, etc.). These apparatus consist essentially of devices which can generate a point of light and display it on a screen synchronously with the source signals, xxxxxxxxxx The most common means of image reconstitution is the cathode-ray tube, for direct vision, or a projector with up to three projection cathode-ray tubes: however, other ....