TaxTMI 
TaxTMI 
2025 (12) TMI 892
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....te Limited (hereinafter referred to as the "Applicant") is a private limited company that was incorporated in the year 2019 under the Companies Act, 2013. The Applicant is engaged in import, manufacture and trading of Computer Hardware & Peripherals, Computer Mouse, Speakers, Earphones and Accessories, Headphone, Adaptors, Plugs & Sockets, Power Adapter, Computer Cabinets, USB Gadgets, Audio Mixer, Recorder & Transmitter, Music Systems etc. The Applicant operates under various brands. 2.2 The Applicant is now proposing to import "LED Monitor Kit" in an unassembled form. These imports will be in form of Kits. Each Kit imported will consist of the following components: 3. Post Import Processes A. Post importation, the imported LED Monitor Kit will be assembled into LED Monitor in India. The processes undertaken for the assembly will be as follows: * Step 1: Incoming Quality Control- The quantity and quality of components imported will be checked to ensure if the same are suitable for assembling the finished good. * Step 2: Assembling of the components- a. The components imported will be assembled into the finished LED Monitor. b. The proce....
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....mages of the LED Monitor that will be assembled in India is produced below: 4. Applicant's interpretation of Law/Facts: CLASSIFICATION OF LED MONITOR KIT 4.1 The classification of the goods imported into India is to be determined based on the General Rules of Interpretation (hereinafter referred to as the "GRI") set out in the Tariff. 4.2 As per Rule 1 of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI. 4.3 The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature (hereinafter referred to as 'HSN') issued by the World Customs Organization (hereinafter referred to as 'WCO'). It has been held by the Hon'ble Supreme Court in the case of Collector of Customs, Bombay vs. Business Forms, 2002 (142) ELT 18 that the HSN Explanatory Notes aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. 4.4 By applying Rule 2(a), the imported LED Monitor Kit used in the assemb....
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.... under CTI 85285200 being monitor in terms of rule 2(a) and being capable of directly connectable and designed for use with an ADP machines of heading 8471. 6.2 Nobody appeared for PH from the department side. Discussion and findings 7.1 I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 7.2 The Applicant has sought advance ruling in respect of the following questions: a) Whether the imports being made will be considered to be import of LED Monitor in an unassembled form and whether the same will be classifiable under Tariff Item 85285200 of the First Schedule to the Customs Tariff Act, 1975? b) If the imports mentioned above is not classifiable under the Tariff Item as mentioned above, then what would be the correct classification of the imported LED Monitor Kit under the Tariff. 7.3 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Custo....
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.... 2 (a) of the GRI is divided into 2 parts. The first part of Rule 2 (a) deals with an article imported in incomplete or unfinished form. The Rule states that if the imported component has the essential character of the complete or finished article, then the imported component will be classified as the finished article at the time of import itself. The second part of Rule 2 (a) deals with complete, finished article imported in unassembled or disassembled form and states that such components will be classified as the finished/assembled article. The Rule further says that even incomplete/unfinished article imported in unassembled form (and having the essential charact of the finished article) will be classified as the finished, assembled article at the time of import. 7.7 In the Applicant's case, the second part of Rule 2(a) is applicable, as the LED Monitor is imported in an unassembled form. The relevant portion of the HSN Explanatory Notes to Rule 2(a) of GRI is extracted below: RULE 2 (a) (Articles presented unassembled or disassembled) (V) The second part of Rule 2 (a) provides that complete or finished articles presented unassembled or disass....
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....rews, nuts, bolts, etc.) or by riveting or by welding provided only assembly operations are involved. It also states that no accounts is to be taken to the complexity of the assembly method. However, the components shall not be subjected to any further working operations to bring it to completion into finished state. Thus, this rule is applicable in cases where :- (i) only assembly operations are involved irrespective of the complexities of the assembly methods; and (ii) components themselves should not be subjected to any further working operations for completion into finished state." From the above and the applicant's submission it is clear that the LED Monitor Kit is in the nature of unassembled LED Monitor at the time of import and assembling will be done by using screwdriver and some components will be soldered, therefore, as per the the second part of Rule 2(a), inter-alia, provides that unassembled or disassembled articles are at the time of import classifiable as the assembled article, provided only assembly operations are taking place post import in India. This Rule is squarely applicable in present case. This is explained further below. A....
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....hey usually cannot be operated by a remote control; (ix) They may incorporate tilt, swivel and height adjusting mechanisms, glare-free surfaces, Flicker-free display, and other erogonomic design characteristics to facilitate prolonged Periods of viewing at close proximity to the monitor; x. They may utilize wireless communication protocol to display data from an automatic data processing machine of heading 84.71. 8.1 In view of the above and Rule 1 of GRI, it can be noted that monitors are having specific CTH 8528. However, monitors are further divided into parts. First is provided for "Cathode- ray Tube Monitors" and second is provided for other monitors. The subject goods imported by the applicant is not a Cathode-ray Tube Monitors and hence it will fall under "Other monitors". 8.2 As the subject goods mentioned at sr. no. 1-16, 18-21, 24 & 30 of Table-I (except the goods i.e. polybag for monitor, Finger Brand Gift Box, Handle for packing box, User manual, thank you note, outer carton MRP sticker, Outer carton serial no. sticker, serial number for gift box, Outer Box and Transparent seal sticker for packing sealing) being capable to form a complete/finishe....
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....ther The explanatory notes provides that this beading covers all self-adhesive flat shapes of plastics, whether or not in rolls, other than floor, wall or ceiling coverings of heading 39.18. The heading is, however limited to flat shapes which are pressure-sensitive, i.e., which at room temperature, without wetting or other addition, are permanently tacky (on one or both sides) and which firmly adhere to a variety of dissimilar surfaces upon mere contact, without the need for more than fmger or hand pressure. It should be noted that this heading includes articles printed with motifs, characters or pictorial representations which are not merely subsidiary to the primary use of the goods (see Note 2 to Section VII). Therefore, in view of the GRI 1, heading and explanatory notes above and 2(a) of section XVI, it is clear that seal sticker for packing sealing are Classifiable under CTH 39199010. 8.3.2 CTH 3923 provides- ARTICLES FOR THE CONVEYANCE OR PACKING OF GOODS, OF PLASTICS; STOPPERS, LIDS, CAPS AND OTHER CLOSURES, OF PLASTICS 3923 10- Boxes, cases, crates and similar articles: 3923 10 10 --- Plastic containers for audio or video cassettes, cassette ....
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.... 4819 10 - Cartons, boxes and cases, of corrugated paper or paperboard : 4819 10 10 --- Boxes 4819 10 90 --- Other 4819 20 - Folding cartons, boxes and cases, of non-corrugated paper and paperboard : 4819 20 10 --- Cartons, boxes, cases, intended for the packing of match sticks 4819 20 20 --- Boxes 4819 20 90 --- Other As per the HSN explanatory notes of heading 4819- (A) Cartons, boxes, cases, bags and other packing containers. This group covers containers of various kinds and sizes generally used for the packing, transport. storage or sale of merchandise. whether or not also having a decorative value. The heading includes cartons, boxes, cases, bags, cones, packets, sacks, paperboard drums (containers), whether manufactured by rolling or by any other method, and whether or not fitted with reinforcing circular bands of other materials. tubular containers for posting documents, protective garment bags, jars, pots and the like (e.g., for milk or cream) whether or not waxed. The heading also covers special purpose paper bags such as bags for vacuum cleaners, bags for travel sickness, and record boxes and sleeves....
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....r, whether or not printed (headings 73.26, 76.16, 79.07, etc., or heading 83.10). In view of the GRI 1, heading and explanatory notes above and 2(a) of section XVI, it is clear that printed thank you note, MRP stickers, serial no. stickers for identification are classifiable under CTH 4821. 8.3.6 CTH 4901 covers- PRINTED BOOKS, BROCHURES, LEAFLETS AND SIMILAR PRINTED MATTER, WHETHER OR NOT IN SINGLE SHEETS 4901 10 - In single sheets, whether or not folded : 4901 10 10 --- Printed books 4901 10 20 --- Pamphlets, booklets, brochures, leaflets and similar printed matter - Other : 4901 91 00 -- Dictionaries and encyclopaedias, and serial instalments thereof 4901 99 00 - Other This heading covers virtually all publications and printed reading matter, illustrated or not, with the exception of publicity matter and products more specifically covered by other headings of the Chapter (particularly heading 49.02, 49.03 or 49.04). It includes : (A) Books and booklets consisting essentially of textual matter of any kind, and printed in anv language or characters, including Braille or shorthand. They include literary works o....
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....tion XVI, it is clear that user manual are classifiable under CTH 4901. 8.4 Based on the literature and documents produced by the applicant, in terms of provisions of Customs Tariff Act, HSN explanatory notes and GRI, I am of the view that goods that imported in unassembled form and being capable to form a complete monitor are to be classified as complete goods i.e. Monitor under CTI 85285200 because only assembling is required. Further, the other goods supplied with the monitor i.e. polybag for monitor, Finger Brand Gift Box, Handle for packing box, User manual, thank you note, outer carton MRP sticker, Outer carton serial no. sticker, serial number for gift box, Outer Box and Transparent seal sticker for packing sealing are required to be classified as under: TABLE-II Sr No. Component Name CTH 1 Polybag for Monitor (520*450MM) 3923 2 Fingers Brand Gift Box 4819 3 Handle for LED Monitor packing box 3926 4 Finger Brand User Manual 4901 5 Fingers Thank you Note 4821 6 Outer Carton MRP Sticker 4821 7 Outer Carton Serial Number Sticker 4821 8 Serial Number for Gift Box 4821 9 Fingers Brand Out....