TaxTMI 
TaxTMI 
2025 (8) TMI 1122
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.... by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. Acer India Private Limited, (hereinafter called as the "Applicant") is a company engaged in the business of manufacturing and selling business laptops, desktops, workstation computers, chrome books, tablets, monitors, projectors, digital signage, smart devices, electronics and accessories and support in IT peripherals including trading thereof and provision of ancillary services connected therewith. The applicant in the course of its business, undertakes supply of various models of 'Acer' braded Interactive Flat Panels within India either after importing them as finished goods or getting them manuf....
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....ivity ports, specifically HDMI, VGA, USB, LAN network, RS232, RJ-45, touch ports, Bluetooth, MIC/ earphone, etc. The IFP has a multi touch feature and is compatible with a stylus and a remote control, procured along with the IFP. 4.5 IFP has a 4K User Interface and has an Android Operating System, with the ability to write and store documents, assisting in file management, undertaking multiple tasks at the same time on the IFP, supporting music and video players and a user-friendly toolbar. The IFP can be considered to function as an 'All-in-One-PC'. Further, Copies of the brochure of Acer Interactive Flat Series is enclosed with application. 4.6 IFP contains a self-sufficient embedded program which is catered to the requirements of the user. The product is also capable of having storage, processing data available in coded form and executing it without any human intervention. They undertakes supply of various models of IFP with different display sizes. 4.7 The applicant is supplying Interactive Flat Panel under Tariff Heading 8471 which classifies as Automatic Data processing Machines and units thereof; magnetic or optical readers, machines for transcribing data on to data....
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....d such headings or Notes do not otherwise require, according to the following provisions :" d) The Applicant submits that Section XVI of the Customs Tariff lays down the Section Notes for "machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers; and parts and accessories of such articles" thus covering Chapter 84 and Chapter 85 of the Customs Tariff. e) The Applicant submits that the relevant portions of HSN entry and Explanatory Notes to HSN for Chapter 8471, which the Applicant considers to be applicable to the Applicants IFP is as follows- Relevant entries from GST Tariff - Chapter 84 71 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 . - Other automatic data processing machines : 8471 41 - Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined: 8471 41 90 ---- Other Relevant portion of the Explana....
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....ata for other data processing operations. This heading covers data processing machines in which the logical sequences of the operations can be changed from one job to another, and in which the operation can be automatic, that is to say with no manual intervention for the duration of the task. These machines mostly use electronic signals but may also use other technologies. They may be self-contained, all the elements required for data processing being combined in the same housing, or they may be in the form of systems consisting of a variable number of separate units. This heading also covers separately presented constituent units of automatic data processing systems described above." "Thus, machines which operate only on fixed programs, i.e., programs which cannot be modified by the user, are excluded even though the user may be able to choose between a number of such fixed programs. These machines have storage capability and also stored programs which can be changed from job to job." f) The Applicant submits that on a perusal of the Tariff Entry and Explanatory Notes, Chapter Heading 8471 is the most appropriate chapter heading to cover vari....
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...., the goods fall under HSN 8471. 8. The ruling is given as below: In view of the above discussion, the questions raised by the applicant are clarified as below: Questions Ruling Whether the appropriate HSN classification of the above-described Interactive Flat panel with Android would be under the heading 8471? Yes. b. In the case of In Re: Savex Technologies Pvt. Ltd. (2023) 5 Centax 10 (A.A.R. - GST - Chh.) it was observed that if the product duly satisfies the stipulations as mentioned in the Section note and chapter note of Section XVI and Chapter 84 it is classifiable under Chapter Heading 8471, as an ADP machine. Relevant extract is reproduced hereunder: 12. In view of the above discussions we are of the considered view that it would be appropriate to conclude that BenQ Interactive Flat Panel RP7502 Black 75", imported and subsequently supplied to the applicant by their supplier namely i.e., M/s Benq India Private Limited would merit classification under chapter heading 8471 only when the stipulations as mentioned in the section note and chapter note stands complied. In case the impugned machine consisting of individual componen....
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.... a Microsoft surface measuring 42.5 inches long by 27 inches wide by 21 inches high with a 30 inch XGA, DLP interactive tabletop display operating by gesture and touch-based input. It was held to be classifiable under CTH 8471.41.0150 as it met the conditions of an automatic data processing machine set forth in Note 5 A to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS). Relevant portion of the extract is reproduced below: The Surface meets the conditions of an automatic data processing machine set forth in Note 5 A to Chapter 84, HTSUS. It is freely programmable by the user with no hardware or software blocks preventing the user from downloading any operating system or off-the-shelf software. ..... The applicable subheading for the Microsoft Surface will be 8471.41.0150, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Automatic data processing machines and units thereof ...: Other automatic data processing machines: Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined: Other." The rate of duty will be free. b. In CLA-2-84:OT:RR:NC:....
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....id data is transmitted to the screen of the IFP. Therefore, in line with the said description, the product is clearly classifiable under CTH 8471 4190. q) The Applicant in this regard further places reliance on the following decisions pertaining to classification of IFP under Customs Act, 1962 - a. In the case of the case of M/s Ingram Micro India Private Limited Vs Principal Commissioner of Customs (Import), ICD Tughlakabad, New Delhi reported at 2022-VIL-87-CESTAT-DEL-CU the facts and the disputed product were similar to that of the present product. The Tribunal held as follows: 18. The impugned goods are IFP having an in-built CPU (ARM Cortex A.73 dual-core 1.2GHz Processor), a 2GB RAM and Android 7.0 Operating software. In addition, they also have an internal storage capacity of 16GB. Thus, goods are machines which are capable of storing data or programmes for the execution of programmes and satisfy condition no. (i) of Chapter Note 5(A) to Chapter 84. 19. The goods come with a pre-installed operating system, namely, Android 7.0. The said Android version is a customized operating system for these IFP. Further, the goods also have an OPS slot. With ....
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....thout restrictions. The AIO is equipped with hardware and software which allow it to perform, without artificial constraints, general computing tasks, where users are free to add or remove applications of their choice. In view of these facts, I rule that View sonic Creative Touch Interactive Flat Panel with model numbers specifically mentioned in Table-A merit classification under Heading 8471 and more specifically under sub-heading 84714190 of the first schedule to the Customs Tariff Act, 1975. Further, since BIS certification is a mandatory requirement for import of these goods, necessary certificate from BIS authorities shall be produced before the Customs authorities at the time of import. c. In the case of Hewlett Packard India Sales Pvt Ltd v. Commissioner of Customs (Import), Nhava Sheva reported at 2023-VIL-03-SC-CU, wherein the issue before the Hon'ble Supreme Court was with respect to the classification of an 'All-in-One Integrated Desktop Computer'. The question pertained with respect to the portability of such a product and while allowing the Appeals filed by the Assessee, the Apex Court set aside the order of the Tribunal classifying the goods under CTH 8471 3....
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....ercial usage test' are the most common [see A. Nagaraju Bors. v. State of A.P., 1994 Supp (3) SCC 122 = 1994 (72) E.L.T. 801 (S.C.)]. Whether a particular article will fall within a particular Tariff heading or not has to be decided on the bases of the tangible material or evidence to determine how such as article in understood in 'common parlance' or in 'commercial world' or in 'trade circle' or in its popular sense meaning. It is they who are concerned with it and it is the sense in which they understand it that constitutes the definitive index of the legislative intension, when the statute was enacted [see D.C.M. v. State of Rajasthan, 1980 (4) SCC 71 = 1980 (6) E.L.T. 383 (S.C.)]. One of the essential factors for determining whether a product falls Chapter 30 or not is whether the product in understood as a pharmaceutical product in common parlance [see C.C.E. v. Shree Baidyanath Ayurved, 2009 (12) SCC 413 = 2009 (237) E.L.T. 225 (S.C.)]; Commissioner of Central Excise, Delhi v. Ishaan Research Lab (P) Ltd. - 2008 (13) SCC 349 = 2008 (230) E.L.T. 7 (S.C.)]. Further, the quantity of medicament used in a particular product will also not be a relevant factor for, normally, the ext....
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....ibing data onto data media in coded form and machines for processing such data, not elsewhere specified or included" 6.3 Held that the rate of tax applicable on such goods depends upon the classification of the same and the effective rates of the same is specified in schedules appended to Notification No. 01/2017-CT (Rate) dated 28.6.2017. Subject to the adherence of stipulations as discussed above, the applicable Rate of tax is 9% CGST + 9% SGST on goods classifiable under 8471, in terms of Entry No. 360 to Schedule-Ill to Notification No. 01/2017- CT (Rate) dated 28.6.2017. In case the impugned goods are classifiable under heading other than 8471 owing to its functionality as discussed hereinabove, the said goods will attract rate of tax as specified in the schedules appended to Notification No. 01/2017-CT (Rate) dated 28.6.2017 on such supplies on the basis of description specified therein, including rate of tax @ 14% CGST + 14% SGST (specified in Schedule-IV to the Notification). 6.4 The Central jurisdictional authority has not furnished any reply in this regard. Hence, it is construed that there are no proceedings pending or decided on the issue raised by the applicant. ....
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....ed for use with an automatic data processing machine of heading 8471". Once the classification is decided, the rate of tax can be ascertained. 8.3 As per the facts presented by the applicant before us, the applicant intends to supply various models of 'ACER' branded interactive Flat Panel (IFP) to be sold in India. IFP is a large interactive screen having an embedded interactive white board, software, in-built processor and additional compatible CPU called as Open Pluggable Specification (OPS), and encompasses a built-in processor, memory, and storage, along with an android operating system software. 8.4 The applicant's product is 'Interactive Flat Panel Display' (IFPD), having features of an Automated Data Processing machine. Now, it is pertinent to know what an ADP machine, its purpose and what an IFPD and where & why it is used. 8.5 In common parlance, an ADP machine refers to the use of computer systems and software to efficiently and accurately process, organise, and manage data. It performs a wide range of activities related to handling of data in the digital format. They are designed to streamline data related tasks, reducing the need for manual intervention and min....
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....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. 9. An IFPD is touch enabled screen that allows users to interact directly with the content. It often comes with built-in software and features for collaboration and engagement, making them suitable for classrooms and professional settings. Primarily, it is an output device, displaying information from computer like text, images and videos. It now combines with a touch screen and often built-in computing capabilities. With regard to interaction, it allows users to touch, write, draw, and manipulate content directly on the screen, often supporting multi-touch and stylus input. It's typical uses are mainly in Classrooms for interactive lessons, conference rooms for presentations and collaboration, and retail spaces for interactive displays. 10. An IFPD has far better screen quality featuring 4K resolutions and a clear picture regardless of lighting. It is more versatile, enhanced wide viewing angles, quality of images which make it po....
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....tand the rigors of classroom or conference room environments. 13. Overall, an interactive flat panel displays enhances engagement and collaboration by providing an intuitive and interactive way to present and share information particularly in classrooms and meeting rooms, but they are also used in other settings such as trade shows. museums, and exhibitions. 14. In spite of the in-built features of an ADP machine, IFPD is unique in itself for the intended the purpose such as touch screen interface, large screen size, multi-touch capability and high resolution for larger audience. Now let us discuss and compare the above features with an ADP machine. 15. As per the tariff reproduced above, an ADP machine must be capable of- (a) storing, processing programmes and data immediately necessary for the execution of the programme (b) being freely programmed according to the requirements of the user; (c) performing arithmetical computations specified by the user; and (d) executing a processing or modify the programme without human intervention, by logical decision during the processing run; 16. While the IFPD satisfies all the criteria of an A....
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....ntent, write, draw and collaborate directly on the screen. This facility is not available in an ADP machine as its intended purpose is for data storing, processing and manipulation which also satisfies the criteria described in the GST tariff. The size and capacity of an ADP machine is based on the quantum of data it processes and the speed with which the tasks are achieved. Just because an IFPD is having the features of an ADP machine, it shall not be called as an ADP machine in normal trade parlance but it is only called as 'Interactive Flat Panel Display' because of its primary end use. The purpose of IFPD is to facilitate viewing for big group of people during official meetings, classrooms etc. The user who is conducting such class/meeting can surf, write draw by directly touching the screen or through stylus. Since an IFPD is not intended to be used as an ADP, the wide variety of configuration available with ADP shall not be available here. Basic additional essential features of an ADP machine with minimum configuration is sufficient for an IFPD for its use. However, the variety with regard to an ADP machine is based on the processing speed, capacity to store data, to perform ....
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....ines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function 25. Similarly, para 6(E) of the Chapter Notes to Chapter 84 states, (E) Machines incorporating or working in conjunction with an automatic data processing machine and performs a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, or failing that, in residual headings. 26. Further, para 8 of the Chapter notes to Chapter 84 is very specific which states that, 8. A machine which is used for more than one purpose is, for the purposes of classification, to be treated as if its principal purpose were its sole purpose. 27. Therefore as per the above paras in General Interpretative Rules (GIR) of HSN, Section Notes and Chapter notes, it is inferred that IFPD is a composite system with additional features of an ADP, which are ancillary to the main function of large display and touch capabilities. On a combined reading of par....