TaxTMI 
TaxTMI 
2025 (12) TMI 1560
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....to as the 'Act'). 1.1 The Applicant intends to import 'Stylus Pen' in India for further sale and further stated that no processing whatsoever would be carried out on the imported goods, post importation into India. 1.2 Description & Usage of Stylus Pen: Stylus Pen ("S-Pen" / "subject goods") is a pen-like instrument that is used to interact with touchscreen devices. It is used as an accessory device to allow precise and accurate inputs in touchscreen devices. 1.3 The subject goods in the instant case are designed to be used with Ultra phones and its features are optimized for use with Ultra phones, however, its versatile design also allows for effective compatibility with other Samsung touch-enabled devices such as interactive monitors and tablets. This adaptability ensures that users can enjoy the S-pen's functionality across a range of compatible technology products in addition to Ultra phones. To be operated with samsung devices, the S-Pen needs to be paired with such devices using the Bluetooth connection. For ease of reference, the image of 'S- Pen' is reproduced below: 1.4 The predominant features of the S-Pen have been outlined belo....
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....d transaction that applicant intends to import 'S-Pen' in India for further sale to domestic customers. 1.8. The applicant further submitted the ground of eligibility to file an application for Advance Ruling. * Based on the criteria specified under Chapter VB, Customs Act, 1962, the following checklist has been prepared in order to prove that applicant is eligible to file this application, inter alia; Whether the applicant holds a valid IEC Number at the date of filing this application .? Yes Whether the present application has been filed in respect of goods prior to importation in India? Yes Whether the present application is barred under Sec. 28-1 (2), Customs Act? No Whether the subject-matter of the present application is eligible to seek Advance Ruling, in terms of Sec. 28-H (2), Customs Act? Yes Whether prescribed Court-fees has been paid at the time of filing the present application Yes * Further, the applicant wishes to seek an Advance Ruling for determination of HSN classification of the 'S-Pen' proposed to be imported into India and in this regard, the applicant wishes to disclose that they regularly impo....
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....ext is reproduced as under: "1. The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification 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 following provisions:" 1.10.4 Basis the above, Rule 1 of GIR, classification must be in accordance with the terms of heading and any other relevant Section and Chapter Notes. 1.10.5 In the event the articles cannot be classified solely on the basis of GRI 1, GRI's 2 through 6 may be applied in order, as appropriate. 1,10.6 Basis the above, let us now procced to analyse the various relevant HSN codes with respect to the subject 'S-Pen'. 1.11 Whether 'S-Pen' may get classified as "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 under Tariff entry 8471" 1.11.1 Chapter 84 of the First Schedule to CTA, pertains to "Nuclear reactors, boilers, ....
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....cified / required to be met in order to qualify as automatic data processing machines, as outlined below: (i) Storage of Processing Programme and Data: The Ultra Phones, Interactive Monitors and Tablets are equipped with internal memory and storage components that are capable of storing the processing programme or programmes, as well as at least the data immediately necessary for the execution of the programme. This allows for the retention and retrieval of information as required by the user. (ii) Freely Programmable: These devices are designed to be freely programmed in accordance with the requirements of the user. They allow the installation and running of various software applications that can be customized to perform a wide range of functions, catering to the diverse needs of users. (iii) Arithmetical Computations: The products under consideration (viz. Ultra Phones, Interactive Monitors and Tablets) are capable of performing arithmetical computations specified by the user. They contain processors that can execute complex mathematical operations, which are fundamental to data processing tasks. (iv) Execution without Human Intervention: The U....
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....o CTH 8471 has been reproduced below for reference: "(B) SEPARATELY PRESENTED UNITS [ ... ] (5) X-Y co-ordinate input devices, which are units for inputting position data into automatic data processing machines. These devices include the mouse, the light pen, the joystick, the track ball and the touch-sensitive screen. Their common attribute is that their input consists of, or is interpreted as, data indicating position relative to some fixed point. Their common usage is to control the position of the cursor on the display unit, as a replacement for or a complement to the cursor keys on the keyboard. This category further covers digitizers, which have similar functions to graphic tablets. However, while graphic tablets are used for creating original art and drawings, as well as for application menu selection and on-screen object control, digitizers are generally used for the capture of existing drawings that exist only in hard-copy form. Digitizer pointing devices may assume any shape, but must be small enough to be hand-held and moved around the (active) sensing region of the digitizer. Cross-hair cursors are the most common shape." 1.11.8 HS....
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.... white board is primarily a display device though by using the electronic pen commands can be sent to the computer for a specific action. As such, it is such pen which more appropriately can be put under an input device like mouse, key board, etc .. " 1.13 Given the above, it may be concluded that S-Pen fulfils the criteria delineated for "X-Y coordinate input devices" as defined in explanatory notes to CTH 8471. 1.14 In furtherance of the arguments above, it is pertinent to note that, pursuant to Chapter Note 6(C), "X-Y coordinate input devices" are eligible for classification under CTH 8471 if they fulfil the specific criteria enumerated in sub-paragraphs (ii) and (iii) of Note 6(C): (a) Condition (ii) stipulates that the device must be connectable to the central processing unit (CPU) either directly or through one or more other units. Regarding the criterion set forth in condition (ii), the S-Pen meets this condition as it is designed to interface seamlessly with the CPU of the host device, such as Ultra Phones, Interactive Monitors and Tablets, through a direct connection or, in some cases, via intermediate components that facilitate communication between the S-P....
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....ors, 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. 1.16 As per chapter note 6(D), certain items are expressly precluded from classification under heading 8471, even if they satisfy all the requisite conditions set forth in Note 6(C). On a perusal of the Exclusions listed above, it may be observed that the S-Pen does not fall within the ambit of the exclusions enumerated under the aforesaid Note 6(D). 1.17 The applicant further submitted that the S-Pen falls within the purview of the 6(E) which stipulates that 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 under headings appropriate to their respective functions or, in the absence thereof, under residual headings. 1.18 The S-Pen, is a product that is designed to work with Ultra Phones and has versatile capabilities ....
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....al progression and enhanced functionality that is contemplated within the scope of the tariff entry, thereby meriting its classification under the specified heading. Given the above, it can be concluded that S-Pen is classifiable under separate units of automatic data processing machines as "X-Y co-ordinate input devices". 1.24 In this regard, attention is invited to the issue of classification of 'Surface Pen' which came into consideration before American Custom Ruling, in the case of Microsoft Corp., Case No. N288967, ruling dated 25-08-2017. The merchandise in question included the Microsoft Surface Dial, Surface Pen, and Surface Pen Tip Kit. The Surface Dial and Surface Pen are bluetooth-enabled devices designed to interact with capacitive touchscreen devices, primarily the Microsoft Surface tablet PC. 1.25 It was observed that "the Surface Pen is a battery operated Bluetooth stylus pen, the tip of which is pressure sensitive and sends digital signals to the tablet PC. Like the Surface Dial, when used on Microsoft Surface tablet PCs with a Microsoft-based digitizer, additional features are enabled. The tail of the pen contains electronics and a control button that....
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....pplicant was provided to the concerned customs port, i.e. ACC (Import), New Customs House, New Delhi and requested to furnish the requisite comments in the instant matter. However, unfortunately, the response from the Customs Port Commissionerate has not been received in spite of multiple reminders. Further, the Customs Port Commissionerate did not participate in the hearing, neither shared any comments in the matter. In this situation, the authority is constrained to proceed to pronounce ex-parte rulings in view of the provisions of the CAAR Regulations, 2021 wherein mandatory timeline given under the Act & Rules. Personal Hearing 3. The personal hearing in the matter was conducted on 04.06.2025 wherein the authorized representatives of the applicant attended the same. During the personal hearing, the authorized representative reaffirmed the points that had already been presented in the applicant's initial submission. Further, no one has joined from the concerned customs port. Findings, Discussion and Conclusion 4. Having completed the procedure laid down in the CAAR Regulations, I first allow the application taking into account the facts of the case and submission....
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.... proposed imports in the form of relevant Chapter notes, Section notes and HSN Explanatory Notes to the respective Chapter headings, I proceed to deliberate upon the issue on the basis of information available on record. Product description :- 4.4 Further, as per applicant's submission, Stylus Pen ("S-Pen" / "subject goods") is a pen-like instrument that is used to interact with touchscreen devices and used as an accessory device to allow precise and accurate inputs in touchscreen devices. It is designed to be used with Ultra phones; however, its versatile design also allows for effective compatibility with other Samsung touch-enabled devices such as interactive monitors and tablets and needs to be paired with such devices using the Bluetooth connection. It operates on Electro Magnetic Resonance (EMR) Technology. What should be its classification :- 4.5 On perusal of the instant application for advance ruling, it is observed that the applicant has given detailed submissions regarding features and functioning of the goods in question and has inter- alia stated that the 'Stylus Pen' is classifiable under CTH 8471 60 90. 4.6 The issue involved is whether the....
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....g part of an automatic data processing system if it meets all of the following conditions: (i) it is of a kind solely or principally used in an automatic data processing system: (ii) it is connectable to the central processing unit either directly or through one or more other units; and (iii) it is able to accept or deliver data in a form (codes or signals) which can be used by the system. 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. 4.8. As per Chapter note 6(C), X-Y co-ordinate input units should satisfy the conditions (ii) and (iii). The Stylus Pen satisfies the conditions (ii) and (iii) as the Stylus Pen are connectable to the CPU through the Digitizer (Screen) and they are capable to deliver 'data'. Hence, it appears that the Stylus Pen is classifiable under CTSH 8471 60 -Input or output units, whether or not containing storage units in the same housing. 4.9. In this regard, it is referred to Note 6(C) to Chapter 84 which lays down conditions for a device to be a part of automatic data processi....