TaxTMI 
TaxTMI 
2025 (12) TMI 1747
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....ant, Stallion Solutions, is a partnership firm incorporated in the year 2024 under the Indian Partnership Act, 1932. The Applicant proposes to engage in the business of providing Information Technology and Networking Solutions and related services, including the provision of hardware solutions, accessories, and spares. In furtherance of its business, the Applicant is proposing to import certain Portable Computers from its supplier, Newland Taiwan Inc. 2.2 The Portable Computers proposed to be imported fall into three broad categories: (i) Barcode Mobile Computers, (ii) RFID Mobile Computers, and (iii) Tablet Mobile Computers. These categorizations are indicative and based on variations in features such as processor speed and number of cores, display screen size, presence or absence of keypad, supported Wi-Fi radio standards (802.11 a/b/g/n/ac), battery capacity, inclusion of automatic identification sensors like barcode scan engines, RFID reader modules, NFC or GPS, and the physical form factor of the device (for example, devices with gun grips for intensive barcode scanning or larger screens for extensive data display). 2.3 The specific models proposed to be imported under e....
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....le delivery. Notably, the calling function on SIM-enabled devices is a supplementary feature and not the core functionality, which remains the scanning and processing of data. 2.7 . The applicant has further submitted that the classification of goods imported into India is governed by the General Rules of Interpretation (GRI) as set out in the Customs Tariff. Rule 1 of the GRI provides that classification shall be determined according to the terms of the headings and any relevant Section or Chapter Notes. The Indian Tariff is aligned with the Harmonized System of Nomenclature (HSN) up to the six-digit level, and as held by the Hon'ble Supreme Court in Collector of Customs, Bombay v. Business Forms - 2002 (142) ELT 18, the HSN Explanatory Notes may be used as a reliable guide to interpret the headings of the Tariff. 2.8 Heading 8471 covers automatic data processing (ADP) machines and units thereof. Sub-heading 847130 specifically relates to "portable digital automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display." Sub-heading 84713010 covers "Personal Computers," and sub-heading 84713090 ....
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....fore correctly classifiable under Heading 8471, specifically under Tariff Item 84713090 of the Indian Customs Tariff. 3. Details of Hearing A hearing was conducted on 09.04.2025 at 1:00 PM. Ms Srinidhi Ganeshan and Ms Anaya Bhide, Advocate/ Authorized Representative (AR), appeared online on behalf of the applicant and reiterated the contentions filed in the application and submitted that the subject goods i.e the three models of import goods Barcode Mobile computer, RFID mobile computer and Tablet mobile computer are essentially ADP machines and not mobile communication devices and merit classification under CTI 8471 3090. They also showed and demonstrated the sample of the three subject import goods. They also relied upon the different case laws including the rulings passed by this authority in the matter of M/s Senate Solutions, M/s Delmon Solutions Pvt. Ltd. and others. They also submitted a compilation of indexes covering the relevant provisions of Customs Tariff and Explanatory Notes and Case laws. Nobody appeared the hearing from the department side nor comments or submission have been received from the Jurisdictional Commissionerate - Commissioner of Customs, ACC (I....
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.... 6(B) 7 NLS-MT95 5G Portable Data Collector Device with SIM Card & Wi-Fi Exhibit 7(A) Wi-Fi Only Device Exhibit 7(B) 8 NL.S-MT93 4G Portable Data Collector Device with SIM Card & Wi-Fi Exhibit 8(A) Wi-Fi Only Device Exhibit 8(B) 9 NLS-MT93 Lite 4G Portable Data Collector Device with SIM Card & Wi-Fi Exhibit 9(A) Wi-Fi Only Device Exhibit 9(B) 10 NLS-NFT10 Portable Data Collector Device with SIM Card & Wi-Fi Exhibit 10(A) Wi-Fi Only Device Exhibit 10(B) 11 RFID Mobile Computer NLS-MT93-U 4G RFID/UHF Mobile computer SD60RT Mobile Computer Device with SIM Card & Wi-Fi Exhibit 11(A) Wi-Fi Only Device Exhibit 11(B) 12 Device with SIM Card & Wi-Fi Exhibit 12(A) Wi-Fi Only Device Exhibit 12(B) 13 Tablet Mobile Computer SD100 10 inch TABLET with 4G/5G Device with SIM Card & Wi-Fi Exhibit 13(A) Wi-Fi Only Device Exhibit 13(B) 14 SP80 10.1 inch industrial tablet with 4G/5G Device with SIM Card & Wi-Fi Exhibit 14(A) Wi-Fi Only Device Exhibit 14(B) 15 SK80 8 inch industrial tablet with 4G/5G Device with SIM Card & Wi-Fi Exhibit 15(A) ....
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.... - Easily sync with modems, printers, and headsets using Bluetooth wireless connectivity Always stay connected via phone using integrated cellular service (for some models which can accommodate sims) RFID Mobile Computer (have RFID reader) These devices are adding the new capabilities with integrated UHF/RAIN RFID readers. - ID and 2D scanning of barcodes. - Securely access programs or databases stored in the cloud or office using the latest Wi-Fi technologies. - Take advantage of high-speed WLAN networks. - Add additional memory using expandable card slots. - Accurately pinpoint the locations of employees, assets, and businesses with optional GPS Tablet Mobile Computer (Tablet with Displays larger than the above 2 categories of Portable Computers) Handheld computers for undertaking processing and communication activities in sensitive areas. 4.4 The Applicant submitted that the devices in question are rugged, portable digital automatic data processing machines equipped with features such as barcode and RFID scanners, wireless connectivity, and programmable processing capabilities. They further submitted that these devices are primarily utilized in indu....
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....as being part of an automatic data processing system which is reproduced below : 6(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. 4.6 However, from the working and features of the impugned devices, it appears that these are not units of ADP machines, but ADP machines themselves. 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 ....
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.... the industry-wide understanding that these devices function predominantly as portable computing terminals and not as telecommunications equipment. This interpretation has been cited repeatedly in customs practice and continues to hold binding value under Section 151A of the Customs Act, 1962. 4.11 Further reinforcement of this classification approach is found in the recent rulings concerning the classification of similar products-namely, Portable Computers-the Customs Authorities for Advance Rulings, in the cases of M/s. Senate Solutions Pvt. Ltd., M/s. Brightpoint India Pvt. Ltd., M/s. Rashi Peripherals Pvt. Ltd., and M/s. RET-Tech Pvt. Ltd., have consistently held that such devices are classifiable under sub-heading 8471 3090. Upon examining the reasoning provided in these rulings, I find that the Authorities have comprehensively evaluated all relevant aspects before arriving at their conclusions. The devices in question are handheld, portable computing units designed for enterprise use, capable of running mobile applications, scanning barcodes, capturing photos and videos, and facilitating voice and data communications. They integrate the functions of a personal computer and....
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....Circular No. 20/2013-Customs, dated 14.05.2013, the Central Board of Excise and Customs provided a clear clarification regarding the classification of "tablet computers" under Heading. 8471. The Board observed 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 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." 4.14 Accordingly, as per the said circular, tablet computers are to be classified under Heading 8471 and not under Heading 8517, notwithstanding the presence of cellular connectivity, as the principal function remains automatic data processing. By parity of reasoning, the devices under consideration -- designed primarily for barcode scanning and d....
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....stoms and 25/2022-Customs further consolidate this approach. Instruction No. 01/2022 stresses reliance on WCO Explanatory Notes and GIRs for classifying multifunctional goods, while Instruction No: 25/2022 reaffirms that classification must be based on essential character. Both instructions emphasize that incidental functions, such as wireless connectivity, cannot override the principal ADP function. 4.19 A detailed comparison, as presented by the applicant of the submission, underscores the functional and technical distinctions between these enterprise-grade devices and consumer-grade smartphones. The impugned devices possess advanced features such as superior scanning capabilities, ruggedized construction, and robust enterprise security protocols -- attributes typically absent in standard. smartphones. Their use is concentrated in enterprise settings for tasks like inventory management, order processing, package tracking, and goods delivery. Primary data transfer occurs via Wi-Fi and Bluetooth, while cellular connectivity is employed only in limited cases for GPS services and data transmission in Wi-Fi-deficient environments. The occasional use of voice calling is incidental a....