TaxTMI 
TaxTMI 
2024 (3) TMI 505
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....del- 5652RK+, 5752RK+ & 5862RK+)" (subject goods, in short) 3.1 The applicant has stated in the application that, the subject goods are an All-in-One (AIO) computer system which function like a large size tablet computer and has an inbuilt mother board, (quad core A73) Micro Processor (CPU), Mali G 52 Graphics Card, 8GB RAM, and 64 GB SSC storage, an embedded android system pre-loaded with Android 11.0 Android Operating System (OS); they are of the bona fide belief that the subject goods are rightly classifiable under sub-heading 8471 41 90. Accordingly, the applicant has raised the question for issue of a ruling on classification of the subject goods under CTH 8471 41 90. 3.2 The applicant has also stated that, the subject goods are an All-in-One (AIO) Computer System, which functions like a large size tablet computer, and has an integrated system with Central Processing Unit, mother board, graphic card, memory (RAM+Storage), touch screen as virtual key board as an input device and video display unit as an output device; the subject goods are not mere display units, rather they are computer systems with extensive connectivity, which offers versatile plug and play compatibili....
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....it capable of modifying their execution by logical decision during the processing run, so satisfies the Condition 5(A)(4) of the said Chapter Notes; in other words, the subject goods fulfills all the conditions of 5(A) of the said Chapter Notes, and thereby qualifies to be covered by the definition of Automatic Data Processing (ADP) Machine; the subject goods, house in addition to a Central Processing Unit (CPU), a LED Screen, which serves as the output source, and a touch-sensitive surface, which acts as the source of input. 3.3 Further, the applicant has stated that, in a similar matter involving the classification of flat panel display, reported in ruling, NY N2800009, dated 31-10-2016, the National Commodity Specialist Division, United States, has held that the flat panel display, which is freely programmable and houses a CPU, and an input unit and/or an output unit shall be classified under 8471.41.0150 of the Harmonized Tariff Schedule of the United States; for an identical item, the Hon'ble Authority, Mumbai vide Ruling No. CAAR/Mum/ARC/04/2022, dated 2-2-2022, CAAR/Mum/ARC/15/2022, dated 3-6-2022 [2023 (383) E.L.T. 343 (A.A.R. - Cus. - Mum.) = (2023) 2 Centax 273 (A.A.R.....
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....ices, known by various names in the industry i.e. Interactive Whiteboard/Smartboard, Interactive Flat Panel Display, Interactive Intelligent Panels etc.; these are an advanced technology goods used in classroom teachings, conferences etc. the Interactive Display Systems can be used to present documents, information and videos to different groups, for educational purposes i.e. e-leaning for example to a group of students in a classroom or during a meeting in a business environment; further, it is also observed that as per Note 6(D) to Chapter 84, Heading 8471 does not cover the monitors and projectors not incorporating television reception apparatus when presented separately even if they meet all the conditions mentioned in Note 6(C) of the said Note; also. Note 6(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; the subject goods are not merely an ADPM and in fact it has many other additional inbuilt features with the main ....
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.... 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 comments of the concerned Commissionerate also referred to the judgment of the Hon'ble Supreme Court in the case of Deena Jee Sansthan v. Commissioner of Central Excise, Meerut - 2019 (365) E.L.T. 353 (S.C.) = [2019] 101 taxmann.com 407 (SC)/71 GST 601 (SC) wherein the Supreme Court held that the classification of product should be by applying common parlance test that the said product i.e. "Shampoo" is used as cosmetics only and not as ayurvedic medicament even though the product has all the ingredients mentioned in books on ayurveda listed in Drugs and Cosmetics Act: in view of the foregoing, subject goods cannot be considered as an Automatic Data Processing machine under CTH 8471; even Ce....
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....ance ruling has admitted that the goods have built-in software integrations; if a machine has built-in software application, then it requires a CPU to process the said software and therefore it is conceded by the department that the product in question is an Automatic Data Processing machine; the goods do not perform any function other than data processing; the large size display is only a feature/specification of the goods and this cannot be construed to be its function, much less its principal function; the department, therefore, is incorrect in contending that the large size of display would mean that the goods are meant for display purpose to a large gathering and. therefore, in terms of Chapter Note 5(E) of Chapter 84, the goods would merit classification as per the specific use; in terms of tariff items contained in Chapter 85 and the HSN Explanatory Notes to CTH 8528. it is more than apparent that CTH 8528 would cover monitors which are capable of receiving and displaying the signals when attached to any of the devices like Automatic Data Processing Machine, Video Camera or Recorder; such monitors do not have the capability of functioning independently or through two way com....
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.... has placed reliance on the decision of the Hon'ble Tribunal in the case of Commissioner of Customs (Import & General), New Delhi v. Integral Computer Ltd. reported in 2016 (337) E.L.T. 580 (Tri. - Del.); however, the said case is completely distinguishable on facts; in Paragraph 3 of the said order, the Hon'ble Tribunal had specifically noted that the "... The product is described as a PC based input equipment which when connected with projector and PC can be used for functions such as writing, noting, drawing, geometric graphics, editing, printing and storing; some of the key features of the white board are that it creates an interactive environment for teaching and demonstration, if connected with PC and projector under the support of dedicated software, the electronic pen supplied with the white board can operate the PC instead of mouse..."; therefore, the product in question was required to be connected to a PC or projector, whereas, the product under consideration In the present case has an in-built CPU and is not required to be connected to a PC or projector to he used; it has an independent functionality. therefore, for the reasons mentioned in the application for advance r....
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.... 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. 9.1 Based on the comments of the concerned Commissioner of Customs, Chennai, on the application for advance ruling, it is observed that classification under Heading 8528 instead of claimed classification under Heading 8471, has been preferred mainly for the reasons that. Interactive Flat-Panel Display (IFPD) is a large-format touch screen display ideal for meeting rooms and collaborative spaces: in a nutshell, an IFP-short for Interactive Flat Panel Display-is a type of Interactive Whiteboard (IWB), as per Note 6(D) to Chapter 84. Heading 8471 does not cover the monitors and projectors not incorporating television reception apparatus when presented separately even if they meet all the conditions mentioned in Note (C) of the said Note, further. Note (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 respectiv....
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....lassification of such goods. In light of the foregoing, the issue of classification, in the instant application gets settled in terms of Rule 1 and Rule 6 of General Rules for Interpretation of Import Tariff (GRI) without inviting reference to Rule 3 of GRI. 10. Since the question under the application for advance ruling relates to classification of goods proposed to be imported, guidance of the World Customs Organization, to which India is a signatory, would be useful. It is noted that the Harmonized System Committee (60th Session) of WCO has examined a similar product, i.e. an electronic interactive whiteboard ("Smart Board"), size 78 inches, consisting of a touch-sensitive, dry-erase surface with multi-touch functionality, which accepts touch input from a pen or a finger and features integrated speakers generally delivered complete with two pens, device driver software & a user guide which can serve as a surface to display the screen of an ADP machine, projected by the video projector and it is able to accept or deliver data in a form which can be used by the ADP machine. The HS Committee of WCO decided the classification of this product under sub-heading 8471.60, adopting th....