TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1740
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....(hereinafter referred to as "FTTH") products. The Applicants intend to import the following "Interactive Flat Panels (hereafter referred to as "Interactive Flat Panel") under its brand name 'Hynits' from China and sell it further to their distributors/consumers. HV Series Y55A10/TS-A06 HV Series Y65AIO/TS-A06 HV Series Y75AIO/TS-A06 HV Series Y85AIO/TS-A06 HV Series Y86AIO/TS-A06 HV Series Y98AIO/TS-A06 2.2 The Interactive Flat Panels comprise of ADS (Advanced Super Dimension Switch) Panel with an LED backlight and 4K HDR picture quality. The subject goods facilitate seamless web conferences and virtual meetings. It can also be utilized as a smart whiteboard and allows users to perform multi- touch gestures on the interactive whiteboard screen. 2.3 The Interactive Flat Panel contains storage and processing capabilities with Android features. They have an in-built Central Processing Unit (CPU) and RAM for the execution of programs. They have a pre-installed operating system, namely, Android 13. In addition, it has an OPS(Open Pluggable Specification) Slot which can be used to download and operate other operating sys....
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....atic 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. 3.2 Chapter Note 6(A) outlines the criteria for classifying a product as an "automatic data processing machine". It can be seen that an automatic data processing machine is defined as any device capable of storing a processing program, being freely programmable, performing arithmetic operations, and executing logical decisions without human intervention. Additionally, it must include a Central Processing Unit (CPU), an input unit, and an output unit, either housed together or interconnected as separate components. 3.3 To qualify for classification under CTH 8471 as an automatic data processing machine (ADPM), the product must meet the criteria outlined in Note 6(A) of Chapter 84. It is asserted that the Interactive Flat Panel meets all the necessary prerequisites and conditions, as outlined in the table below. Storing processing programme(s) for execution of programmes As already mentioned, Interactive Flat Panel is equipped with an integrated CPU, Android o....
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....ualifies as an automatic data processing machine incorporating in a single housing at least a central processing until and an input/output unit, whether or not combined. However, Interactive Flat Panel are neither in the nature of a microcomputer (small or personal computer) covered under CTH 8471 41 10 nor in the nature of a large or main frame computer covered under CTH 8471 41 10. Accordingly, the Interactive Flat Panel is classifiable under the residual tariff heading "8471 41 90-Other" and is subject to a nil rate of duty. 3.6 The Applicants submit that there are numerous advance rulings concluding that Interactive Flat Panel is classifiable under the residual tariff heading "8471 41 90-Other. In the case of M/s Compuage Infocom Ltd. [2022-VIL-57-AAR-CU] it was held that the Interactive Flat Panel is classifiable under the residual tariff heading "8471 41 90-Other. 3.7 A similar view was adopted in the following rulings as well: (i) M/s Viewsonic Technologies India Pvt. Ltd .- Advance Ruling No. CAAR/Mum/ARC/19/2024 dated 15.02.2024 (ii) M/s Supertron Electronics Private Limited-Advance Ruling CAAR/Del/Supertron/10/2023 dated 08.05.2023 No. (ii....
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....ational purposes i.e., e-learning for example to a group of students in a classroom or during a meeting in a business environment ⮚ as per Note 6(D) to Chapter 84, Heading 8471 does not cover the monitors and projectors not incorporating television reception apparatus when presented separately even if they meet all the conditions mentioned in Para(C) of the said Note. Further, para (E) states that machines, instruments or apparatus 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. ⮚ The subject goods are not merely an ADPM and in fact it has many other additional inbuilt features with the main purpose to interact through display as per the intended use i.e., training, conferences, educational purposes, teaching via e-learning etc. The goods are mainly Display devices incorporating and working in conjunction with an automatic data processing machine i.e., inbuilt CPU. Therefore, the primary function of the goods is to display the given input ....
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....uter Lid 2016 (337) E.L.T. 580 (Tri-Del) dated 07.04.2016 the Hon'ble Tribunal has held that "Interactive Electronic White Board" is a teaching device mainly used for class room teaching or in conferences and meetings and work and gets the display function by combined action with a computer and projector cannot be considered as a simple input or output device and is to be identified with its primary function of display and has classified the goods under sub- heading 8528 5100 i.e., other monitors (now CTI 8528 5900)". The issue is squarely covered in the present case. 5. Details of Hearing 5.1 A hearing was conducted on 04.04.2025 at 01:00 PM. Shri Antony Saroj, Authorized Representative (AR), appeared online on behalf of the applicant and reiterated the contentions submitted in the application. He submitted that the subject goods, namely Interactive Flat Panel Displays, are equipped with a CPU, RAM, Android OS or another operating system, and meet all four criteria of an Automatic Data Processing (ADP) Machine as defined under Note 6(A) to Chapter 84 of the Customs Tariff. In support of his submission, he also relied upon Advance Rulings previously issued by this Authori....
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....3 Rate of Duty S. No. Tariff item Commodity From To Textile 1. 6004 10 00 Knitted Fabrics 20%/10% 20% or Rs115/kg. whichever is higher 6004 90 00 6006 22 00 6006 31 00 6006 32 00 6006 33 00 6006 34 00 6006 42 00 6006 90 00 IT & Electronics sector 2. 8528 59 00 Interactive Flat Panel Displays (Completely Built Units). 10% 20% 6.6 The chapter-wise changes pertaining to Customs Tariff rates and HSN amendments have been summarized in Annexure-I to the D.O. Letter F. No. 334/3/2025-TRU, dated 1st February 2025 <https://www.indiabudget.gov.in/doc/cen/dojstru1.pdf>, issued by TRU-I, CBIC, New Delhi, and circulated to all field formations for necessary information and action. The relevant changes made under Chapter 85 are extracted below for ease of reference: https://www.indiabudget.gov.in/doc/cen/dojstru1.pdf Chapter 85: 1) BCD is being increased from 10% to 20% on Interactive Flat Panel Displays (CBU) classified under tariff item 8528 59 00. [Clause 98(b) of the Finance Bill, 2025 read with Third Schedule refers]. By virtue of declaration under the Provisional Collection of....
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....ive), All Principal Chief Commissioner/Chief Commissioner of Customs & Central Tax, All Principal Commissioner/Commissioner of Customs/Customs (Preventive), All Principal Commissioner/Commissioner of Customs & Central Tax, All Principal Director Generals/Director Generals under CBIC. Subject: Clarification on the classification and applicable Basic Customs Duty (BCD) on Interactive Flat Panel Displays (IFPDs) and other monitors - reg. **** Prior to 2025-26 Budget, all goods classified under tariff item 85285900 attracted Basic Customs Duty (BCD) of 10%. In the 2025-26 Budget, BCD on Interactive Flat Panel Displays (IFPDs) classified under tariff item 85285900 was increased from 10% to 20% with effect from 2nd February, 2025 vide Section 103 (a) read with Second Schedule of the Finance Act, 2025 and declaration under the Provisional Collection of Taxes Act, 2023. However, all goods classified under tariff item 85285900 other than IFPD was continued at 10% BCD with IGCR condition vide entry at S. No. 515C of the Notification No. 50/2017-Customs dated 30.06.2017. This was to prevent circumvention of the higher duty on IFPDs. The in....
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....ed in the Finance Bill 2025 on Ist February 2025, and the subsequent clarification issued by the Board vide Circular No. 12/2025-Customs dated 7th April 2025, it is clearly established that Interactive Flat Panel Displays are appropriately classifiable under Customs Tariff Item (CTI) 8528 59 00 of the Customs Tariff Act, 1975. 6.9 Section 151A of the Customs Act empowers the Board to issue orders, instructions, and directions to officers of customs, as it may deem necessary, for the purpose of ensuring uniformity in the classification of goods and the levy of duty thereon. It further mandates that all customs officers and other persons engaged in the implementation of the Act are required to observe and comply with such orders, instructions, and directions issued by the Board. 6.10 The Hon'ble Supreme Court, in the case of CCE v. Dhiren Chemical Industries [2002 (139) E.L.T. 3 (S.C.)], held that circulars issued by the Central Board of Excise and Customs are binding on the Revenue authorities. This position was reaffirmed by the Hon'ble Supreme Court in CCE, Bolpur v. Ratan Melting & Wire Industries [2008 (12) S.T.R. 416 (S.C.)], wherein it reiterated that circulars i....