TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1677
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.... category are as follows: Table-1 Sr. No. Device Category Portable Computer Models Wireless Connectivity Options 1 Mobile Computers SCANPAL EDA52 Device with SIM Card & Wi-Fi Wi-Fi Only Device 2 SCANPAL EDA61K Device with SIM Card & Wi-Fi Wi-Fi Only Device 3. SCANPAL EDA51 Device with SIM Card & Wi-Fi Wi-Fi Only Device 4. SCANPAL EDA51K Device with SIM Card & Wi-Fi Wi-Fi Only Device 5. CK 65 Device with SIM Card & Wi-Fi 6. CT 45 Device with SIM Card & Wi-Fi Wi-Fi Only Device 7. CT45XP Device with SIM Card & Wi-Fi Wi-Fi Only Device 8. CT47 Device with SIM Card & Wi-Fi Wi-Fi Only Device 9. CT40 Device with SIM Card & Wi-Fi Wi-Fi Only Device 10. CT40 XP Device with SIM Card & Wi-Fi Wi-Fi Only Device 11. CT30 XP Device with SIM Card & Wi-Fi Wi-Fi Only Device 12. CT60 Device with SIM Card & Wi-Fi Wi-Fi Only Device 13. CT60 XP Device with SIM Card & Wi-Fi Wi-Fi Only Device 14. CN80 Device with SIM Card & Wi-Fi Wi-Fi Only Device 15. CN80G Device with SIM Card & Wi-Fi Wi-Fi Only Device 16. ....
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....roposed to be imported as under each category are mentioned in above said Table-1. The aforesaid devices are collectively referred to hereinafter as "proposed imports" or "Portable Computers". Each model is available in options of with SIM (WWAN) or without SIM (WLAN). About Portable Computers in General 2.5 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. 2.6 A portable computer is a combination of Personal Computer and scanner, largely utilised by field service personnel. The product carries a processing ability of a laptop and ability functionality of a scanner in a single wireless device. 2.7 These Portable Computers essentially perform 1D and 2D barcode scanning and additionally have features like Wi-Fi/Bluetooth connectivity, data transfer etc. 2.8 The actual use of these devices is in warehousing/logistics/inventory operations for data capturing/storage and its transmission for allied functions 2.9 Portable computers are generally categorized into follow....
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....As evident from Table-I above Portable Computers are available with SIM as well as without SIM connectivity. Communication functions, if any, are generally performed by the Portable Computers using Wi-Fi or wired connectivity. Only when such wireless internet is not available, the devices use cellular network to function (if devices have Sim Card capability and have been fitted with the Sim Card). Thus, cellular network is used only rarely in cases such as during last mile delivery, when Wi-Fi is not readily available etc. In fact, calling function provided in Products 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. Applicants interpretation of Law/Facts: 3.1 The applicant submitted that they satisfy all the criteria required for filing the application for advance ruling, namely: (a) The Applicant has been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; (b) The Applicant is filing the Application in respect of goods prior to their importation into India; (c) The ap....
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.... have storage capability and can store programs which can be changed from job to job. They process data in a coded form. ii. 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. iii. 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. iv. 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, ....
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.... 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. " 3.12 The above too 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 Note 6(D) to chapter 84 lists certain separately presented products that are to be excluded from heading 8471, even if they can be classified as part of an ADP system. Note 6(E) to chapter 84 mentions that a machine 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. As the impugned devices, are akin to ADP machines performing capturing of data and its further processing, the notes 6(D) and 6(E) do not have application in this case. The principal function performed by the Portable Compu....
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....ions of an automatic data processing machine such as downloading and running multiple applications simultaneously, including third-party applications, and whether or not integrating other features such as digital cameras and navigational aid systems. " 3.20 Further reference is made to the HSN Explanatory Notes to Heading 8517: "This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electro-magnetic waves in a wireless network. " 3.21 Further, the HSN Explanatory notes for Heading 8517 covers "Other Apparatus for 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)", where various types of devices that are covered under this entry are provided. 3.22 The portable computers are not classifiable under Heading 8517 because: i. They are not primarily meant for communication purposes. Communication abilities like that of a traditional telephone/mobile telephone is only an ancillary function t....
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....few more features. 3.26 The above entry is not applicable to the Portable Computers without SIM Cards (as they have no cellular connectivity). Further, even in respect of the Portable Computers that have SIM Card capability, the definition of smartphone (extracted above) is not applicable for the following reasons: a. The definition itself shows that 'smartphones' are telephones with few additional features of ADP machine. Unlike 'smartphones' the proposed imports are essentially ADP Machine which have an additional feature of cellular connectivity. Thus, the principal and ancillary functions in proposed imports and smartphones, are diametrically opposite. b. The way the proposed imports are built, it is evident that it is meant for rugged use and is not sleek like smartphones in similar price range. The proposed imports also don't have most of the features there in smartphones of similar price range. c. Furthermore, smartphones of the same price range as the impugned product, are marketed as luxury items for the personal use whereas the impugned products are purely used industrially. Their designs are not sleek or sophisticated lik....
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.... PC and scanning functions into a single device that can be outfitted with off-the-shelf or custom software applications that perform everyday tasks, such as monitoring deliveries, tracking assets, and managing inventory. And because they run on familiar operating systems such as Windows, Android, they offer the same functionality as a desktop computer or laptop. These processors are also equipped with a barcode scan engine and act as their own host, which means one can instantly update and edit information as it is captured. Thus, the Circular applies to all types of Portable Computers as well and supports its classification under Heading 8471. WCO Ruling on RFID Readers is not applicable 3.31 During its 68th Session, World Customs Organization considered RFID readers, having inter-alia SIM capability, and held that the same is classifiable under Heading 8517 as 'Smartphones'. As already demonstrated above, the note on smartphones is not applicable to the present portable computers. The note regarding smartphone clearly states that these devices are telephones for cellular networks designed to perform the functions of ADP machines. 3.32 The portable computers in q....
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....heir comments on 28.02.2025, 24.03.2025, 09.04.2025 & 30.04.2025. However, no response/comment in this matter has been received from the concerned Commissionerate till now. 5. Details of Hearing 5.1 A hearing was conducted on 29.04.2025 at 01.00 PM. Ms. Srinidhi Ganeshan and Ms. Kratik Patni, Authorized Representatives on behalf of the applicant, appeared online for the hearing and reiterated the contentions submitted in the application that all the three products i.e. Mobile Computer, Tablet Computer and Vehicle Mounted Computer merit classification under CTI 84713090. They contended that all the four parameters/conditions/qualification given in Section Note 6(A) under Chapter 84 are applicable on these products as ADP Machine. They relied upon several case laws and HSN Explanatory Notes. It was asked to provide the literature on product namely vehicle mounted computer for that they seek one-week time which is permitted. Nobody appeared on behalf of the department for the hearing. Additional Submission 6.1 The applicant vide their letter dated 06.05.2025 made the following additional submissions regarding the vehicle mounted computer: ⮚ Vehi....
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....d in Note 6(A) to Chapter 84 and should not be covered by Note 6(D) and 6(E) ibid. The Applicant submits that the Vehicle Mounted Computer in question complies with the above requirements and therefore, it is classifiable as ADP Machined under Heading 8471 as tabulated below: Condition to be fulfilled by an ADP Machine as per Note 6 (A) Compliance of the said condition by Thor CV 31 Vehicle Mounted Computers i. Storing the processing program or programs and at least the data immediately necessary for the execution of the program; Thor CV31 Vehicle Mounted Computer is designed to run on the Microsoft Windows Embedded Compact 7 operating system. Additionally, it has a 1.5 GHZ dual-core OMAP4 CPU, 1 GB of RAM and an inbuilt storage capacity of 16 GB, which can be extended by an additional 32 GB, which allows it to store and execute processing programs and the necessary data to provide the desired output. ii. Being freely programmed in accordance with the requirements of the user Thor CV31 Vehicle Mounted Computer runs on Microsoft Windows Embedded Compact 7, which supports a wide range of applications and allows for custom software development. Different apps tailore....
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....r Rule 1 of GRI, 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. 7.5 The applicant has submitted that the devices in question, namely Mobile Computers, Tablet Computers, and Vehicle-Mounted Computers, are Portable Computers. These devices are designed to be handheld, wearable, or mounted on vehicles, and are primarily used for barcode scanning and real-time data processing to enhance the efficiency of operations such as inventory management, last-mile delivery, invoicing, and similar functions. A Portable Computer is essentially a combination of a personal computer and a barcode scanner, widely used by field service personnel. These devices offer the computing power of a laptop along with the scanning capabilities of a dedicated scanner, integrated into a single wireless unit. They are capable of performing 1D and 2D barcode scanning and come equipped with features such as Wi-Fi, Bluetooth connectivity, and data transmission capabilities. The primary applications of these devices are found in sector....
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....ents of the user; (3) Performing arithmetical computations specified by the user; and (4) Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run. (B) Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. (C) Subject to paragraphs (D) and (E), a unit is to be regarded as being 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. Separately presented units of an automatic data processing machine are to be classified in heading 8471. 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....
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....idual headings. In the present case, the impugned devices, as described by the applicant, are comparable to ADP machines engaged in data capture and subsequent processing. Therefore, Note 6(D) and 6(E) are not applicable. 7.10 From the above, it can be concluded that these portable computers are equipped with the necessary hardware, including sufficient RAM and storage, to support the storage and execution of its operating system and software programs, enabling effective data processing. The software loaded onto the device is freely programmable, allowing users to customize the functionality according to their specific requirements. The device is capable of performing the arithmetical computations as specified by the user, and its processing program enables it to modify its execution dynamically based on logical decisions during the processing run without human intervention. In dynamically based on logical decisions light of these capabilities, these during the processing run without human intervention. In portable computers namely Mobile Computers, Tablet Computers and Vehicle Mounted Computer meet all the criteria outlined in Note 6(A) of Chapter 84, thereby qualifying it as a....
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.... the user; and (4) Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run. Thus, machines which operate only on fixed programs, i.e., programs which cannot be modified by the user, are excluded even user may be choose a number of such fixed programs. These machines have storage capability and also stored programs which can be changed from job to job. Automatic data processing machines process data in coded form. A code consists of a finite set of characters (binary code, standard six bit ISO code, etc.). The data input is usually automatic, by the use of data media such as magnetic tapes, or by direct reading of original documents, etc. There may also be arrangements for manual input by means of keyboards or the input may be furnished directly by certain instruments (e.g., measuring instruments). The input data are converted by the input units into signals which can be used by the machine, and stored in the storage units. Part of the data and program or programs may be temporarily stored in auxiliary storage units such as those usin....
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....ope of Chapter Heading 8471 (Automatic data- processing machines and units thereof, magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included), in accordance with Chapter Note 6(A) to Chapter 84. It can be observed that the aforesaid goods are automatic data processing machine, which is portable and weighing less than 10 kgs. Thus, the product falls within the scope of first single dash (-) entry 8471.30 which covers "portable automatic data processing machines, weighing not more than 10 kgs, and consisting of a central processing unit, a key board and a display". Under the first single dash (-) entry 8471.30, there are two triple dash ( --- ) entries available as follows: Heading/Sub- heading/Tariff Item Dash Description 8471 Automatic data-processing machines and units thereof, magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included. 8471.30 - Portable automatic data-processing machines, weighing not more than 10 kg, consisting ....
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.... composite machine performing various functions is to be classified according to the principal function performed by such a device. In the instant case, these devices combine computing and scanning functions for monitoring deliveries, tracking assets, and managing inventory. 31 out of 62 devices also have communication capabilities. However, for the products under consideration, automatic data processing appears to be the main function, while other functionalities of said machines are not different from auxiliary functions that could be seen on any computer, such as desktop or laptop computers. In circular no. 20/2013- Cus, dated 14-5-2013, clarification has been given by the Central Board of Excise and Customs (CBEC) regarding the classification of "tablet computers" under heading 8471 stating that, " ... 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 diff....