AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1016
X X X X Extracts X X X X
X X X X Extracts X X X X
....er referred to as the "Applicant") is a private limited company incorporated in the year 2022 under the Companies Act, 2013. The Applicant is engaged in the business of trading and distributing across categories including Testing & Measurement Instruments, LAN Infrastructure & Cabling, Building Management - Safety and Security Systems, Automatic Identification and Data Capture Products, and Hardware and Electrical products for global brands in India. 2.2 Applicant has submitted that the present application pertains to 'Portable Computers'. The portable computers that are subject of the present application are 'Mobile Computers'. Other forms of portable computers are Tablet Computers and Vehicle-Mounted Computers. 2.3 It is also informed by the applicant in CAAR-I form, that none of the models of subject goods under consideration in the instant application is pending in the applicant's case before any officer of Customs, Appellate Tribunal or any Court of Law. 2.4 These are non-rigid categorizations based on difference in Processor Speed and Number of Cores, Display Screen Size, With Keypad without Keypad, Wi-Fi Radio Standard 802.11 a/b/g/n or ac (Data ....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... The present application is being filed to obtain confirmation and certainty on the classification adopted by the Applicant. And has also submitted copy of a Bill of Entry for reference. 2.8 The applicant's submission about Portable Computers in General 2.8.1 Portable Computers are handheld/wearable//vehicle mountable computers. They are essentially used for scanning barcode and for processing data in real time to increase efficiency of functions such as inventory management, last mile delivery, invoicing, etc. 2.8.2 A portable computer is a combination of Personal Computer and scanner, largely utilized by field service personnel. The product carries a processing ability of a laptop and functionality of a scanner in a single wireless device. 2.8.3 These Portable Computers essentially perform 1D and 2D barcode scanning and additionally have features like Wi-Fi/Bluetooth connectivity, data transfer etc. 2.8.4 The actual use of these devices is in warehousing/logistics/inventory operations for data capturing/storage and its transmission for allied functions. 2.8.5 Portable computers are generally categorized into following types: * Handheld/Mobile - Sma....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cts with SIM is purely a supplementary function since the same has been provided as an additional mode of connectivity apart from Bluetooth, Wi-Fi and GPS. 3. Classification of subject goods "Portable Computers" as per Applicant: 3.1 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. 3.2 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. 3.3 Heading 8471, inter alia, covers automatic data processing machines and units thereof. The Heading also includes portable ADP machines that do not require an external electrical output for functioning. The relevant entries of Heading 8471 of are extracted below: Headings/Sub-Headings/Tariff Item Tariff Description 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 F....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lity and can store programs which can be changed from job to job. They process data in a coded form. i. Being freely programmed in accordance with the requirements of the user The devices come configurable with off-the shelf, end- user applications allowing the programming of the various functions in accordance with the needs of the user. Different apps can be installed and accordingly the products are freely programmable. ii. Performing arithmetical computations specified by the user; and These devices automatically capture details pertaining to inventory, invoicing, real time delivery and subsequently process the same to perform relevant functions. These functions are performed with programming set in tune as basic logical sequence, comprising of data input, data processing and data output. Further, these Portable Computers are freely programmable with various external applications in order to cater to variety of user needs. iii. Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run. The Portable Computers while performing tasks like scanning, asset/inventory manag....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s concerned, it is extracted below: "(E) 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." In regard to Note 6(E) the applicant has submitted that the same will not apply as the portable computers concerned are not merely working in conjunction with an ADP machine but are ADP machines themselves. 3.13 As per the Applicant the Portable Computers viz. Mobile Computers are capable of performing more than one function, i.e., capable of functioning other than as an ADP machine, the function of the ADP machine is the principle function and therefore, the same shall be treated as an ADP machine in terms of Section Note 3 of Section XVI of the Tariff. The relevant portion of Section Note 3 of Section XVI is extracted below: "3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that of a Computer, and communication (even using SIM) is merely incidental and therefore, Tablet Computer is classifiable as an ADP Machine. Thus, the Circular likens the product to a Laptop or Computer and holds that as it satisfies the requirements under Note 5 A to Chapter 84, it will be classified as an ADP Machine. The Circular also reaffirms the ruling of World Customs Organisation, regarding Tablet Computer. The Circular adopted and approved WCO Ruling on Tablet Computers and applied the same to India. 5.1 The Applicant has also submitted that: a. 109 out of 173 variants of 12 models concerned in present case do not have cellular connectivity; and b. identical models are available both with and without cellular connectivity options- that is, SIM capability is just an additional feature to the main product. 6. Thus, many devices do not have the functionality of cellular connectivity, which shows that the SIM is not an integral part of these devices, as these devices are able to perform their primary function with or without the SIM card. These devices are not convenient for the purpose of telephony. Thus, the portable computers imported are rightly cl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rding to the importer's submission, these devices are compact yet durable devices that perform the functions of an automatic data processing machine. Device can always stay connected via phone using integrated cellular service. These devices perform functions with SIM card and Wi-Fi. The devices also offer expandable memory via card slots. The calling function is provided in products with SIM. Additionally, they feature GPS capabilities and can synchronize with peripherals such as modems, printers, and headsets using Bluetooth wireless connectivity. Based on the characteristics and features of said item in light of chapter Note 5 & Custom Tariff, this item is similar to Smart Phone which is rightly classifiable under CTH 85171300. The said device contains all features of smart phone as discussed in above Para's and appears to be classifiable under CTH 85171300. 9.1 In case of Tablet Computer, applicant has relied upon CBIC Circular No. 20/2013 dated 14.05.2013. However, CBIC vide Circular No. 20/2013 dated 14.05.2025 issued clarification on the issue regarding classification of Tablet Computers'. The relevant part of the said Circular is reproduced as under :- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... been considered by the office of the Ld. Asst. Commissioner, ACC. the applicant submitted that following advance rulings have already been issued classifying the Portable Computers under Tariff Item 84713 090. Details of the same are as follows: * Delmon Solutions Private Limited - CAAR Ruling No. CAAR/Mum/ARC/25/2024 dated 22.02.2024 * Senate Solutions Private Limited - 2023 (10) TMI 74 * Brightpoint India Pvt. Ltd. - CAAR Ruling No. CAAR/Mum/ARC/32/2022 dated 10.10.2022 * Brightpoint India Pvt. Ltd. - 2022 (6) TMI 1408 * Rashi Peripherals Private Limited - 2022 (8) TMI 1393 * RET-Tech Private Limited - 2022 (10) TMI 1179 * Mustek Technologies Private Limited - CAAR/Mum/ARC/21/2025-26 dated 30.05.2025 The aforesaid rulings cover various products identical to the Applicant's products and have classified them under Tariff Item 84713090. The applicant also mentioned in its reply the list of products in question in present application and earlier rulings issued by CAAR. The applicant also referred the most recent ruling passed in application filed by Mustek Technologies Private Limited -CAAR/Mum/A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, where the subject products are proposed to be classified under Heading 8471. The applicant reiterated that all models of the Portable Computers, irrespective of their SIM capability, are correctly classifiable under Tariff Item 84713090 as ADP machines. 11. Details of Hearing A hearing was conducted on 11.08.2025 at 1:15 PM. Ms Srinidhi Ganeshan and Ms Anaya Bhide and Shri Sachin Naik, Advocates/Authorized Representatives (AR), appeared online on behalf of the applicant and reiterated the contentions filed in the application and submitted that the subject goods are 'Portable Computer'/'mobile computer' to be used in the processing data in real time to increase efficiency of function like inventory management, last minute delivery, invoicing. That the product carries the ability of a laptop computer and performs scanning work in a single wireless device. The device has many models-with and without SIM Cards and the devices with the SIM are only having additional features that does not alter the fundamental character of the product. They contended that the subject goods merit classification under the CTI-84713090.They rely upon the various case laws ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....i-Fi, Bluetooth connectivity, and data transmission capabilities. The primary applications of these devices are found in sectors such as warehousing, logistics, retail, transportation, manufacturing, healthcare, public services, and inventory management. In these environments, portable computers are used for capturing, storing, and transmitting data to support various operational functions. These Portable Computers as shown in above Table-I, are available in variants with or without SIM card connectivity. Communication functionalities are typically carried out via Wi-Fi or wired connections. The use of cellular networks is limited to situations where Wi-Fi is unavailable such as during last-mile delivery. Importantly, the calling function present in SIM-enabled devices is considered purely supplementary, offered as an additional communication mode alongside Bluetooth, Wi-Fi, and GPS connectivity options. 12.5 The issue before me is to decide the classification of Mobile Computers/Portable Computers. These are handheld portable devices used in warehousing/logistics/inventory operations for data capturing/storage and its transmission for allied functions to run mobile apps, captur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....However, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of (ii) and (iii) above, are in all cases to be classified as units of heading 8471. (D) Heading 8471 does not cover the following when presented separately, even if they meet all of the conditions set forth in paragraph (C) : (i) printers, copying machines, facsimile machines, whether or not combined; (ii) apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network); (iii) loudspeakers and microphones; (iv) television cameras, digital cameras and video camera recorders; (v) monitors and projectors, not incorporating television reception apparatus. (E) 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." 12.7 Therefore, there is a need to examine whether the features and specifica....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Computers, meet all the criteria outlined in Note 6(A) of Chapter 84, thereby qualifying it as a device covered by the definition of automatic data processing machine (ADPM). 12.10 Further, HSN Explanatory Notes to CTH 8471 further elucidates on what constitutes an Automatic Data Processing Machine (ADPM). The relevant portion of the Explanatory Notes are extracted below: "(1) AUTOMATIC DATA PROCESSING MACHINES AND UNITS THEREOF Data processing is the handling of information of all kinds, in pre-established logical sequences and for a specific purpose or purposes. Automatic data processing machines are machines which, by logically interrelated operations performed in accordance with pre-established instructions (program), furnish data which can be used as such or, in some cases, serve in turn as data 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd program or programs may be temporarily stored in auxiliary storage units such as those using magnetic discs, magnetic tapes, etc. But these automatic data processing machines must have a main storage capability which is directly accessible for the execution of a particular program and which has a capacity at least sufficient to store those parts of the processing and translating programs and the data immediately necessary for the current processing run. Automatic data processing machines may comprise in the same housing, the central processing unit, an input unit (e.g., a keyboard or a scanner) and an output unit (e.g., a visual display unit), or may consist of a number of interconnected separate units. In the latter case, the units form a "system" when it comprises at least the central processing unit, an input unit and an output unit (see Subheading Note 2 to this Chapter). The interconnections may be made by wired or wireless means. A complete automatic data processing system must comprise, at least: (1) A central processing unit which generally incorporates the main storage, the arithmetical and logical elements and the control elements; in some ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display. 8471.30.10 --- Personal computer 8471.30.90 --- Other The first triple dash ( --- ) entry under tariff item 84713010 refers to 'personal computers'. It is observed that personal computers, such as desktop computers, are typically designed to be placed on or under a desk. In the present case, however, the products in question are designed to be handheld distinguishing it from a traditional personal computer. Therefore, it does not fall within the scope of CTI 84713010 (personal computer) and should instead be classified under the next triple dash ( --- ) entry, CTI 84713090 (Others). Thus, by virtue of GIR1, Explanatory Notes, Chapter Note 6(A) to Chapter 84, these Portable Computers namely Mobile Computers or Portable computers as listed in Table-I at Para 2.5 above, are classifiable under CTI 84713090 (Portable automatic data-processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display-Others) of the First Schedule of Customs Tariff Act, 1975. 13. I have gone ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat, " ... The mobile phone calling function could be provided by the products only as a supplementary function because it could not be activated without running an operating system of the devices .... These devices are not intended to be a substitute for a mobile phone to make voice calls, but, according to its main technical features is designed as a substitute for laptops. The difference between a "smartphone" and "tablet computer", is not based on whether the product has a voice calling function or not, but on the principal features that a producer has intended for the device when designing and developing it". Thus, as per the said circular, tablet computers are classifiable under heading 8471 and not under heading 8517 despite the fact that the product is having cellular connection functionality, considering its principal function as automatic data processing. Similarly, in this case, the principal function of the impugned devices is barcode scanning and data processing for monitoring deliveries, tracking assets and managing inventory. Therefore, these devices appear to merit classification under heading 8471 and not under heading 8517. Also, the jurisdictional Commissioner....