TaxTMI 
TaxTMI 
2026 (1) TMI 1052
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.... of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the Appellant has been given an opportunity of being heard. 2. Under Section 103(1) of the Act, this Advance ruling pronounced by the Appellate Authority under Chapter XVII of the Act shall be binding only (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of Section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the said advance ruling have changed. 4. Under Section 104(1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-section (1) of Section 101 has been obtained by the Appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the Appellant as if such advance ruling has never been made. M/s. Acer Indi....
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....ellant submits that the product intended to be supplied is IFPD which contains a self-sufficient embedded program which is catered to the requirements of the user. The products basic feature includes storage, processing data available in the coded form and executing it without any human intervention. (e) The four essentials required for any product to classify as Automatic Data Processing (ADP) machine in terms of Note 6A of Chapter 84 of the tariff is duly satisfied by IFPD supplied by the appellant and tabulated the same and contended that the product is rightly classifiable under HSN 84714190. (f) The explanatory notes to Chapter 8471 lays down the three essentials that is required for any product to classify as an ADP machine namely, a CPU with storage, arithmetical and control elements, an input unit which receives input data and converts them into signals which can be processed and Output unit which converts the signals provided into an intelligible form, or into coded data for further use. The appellant states that the product is a large sized Data processing machine with all the features of an ADP. (g) In support of their claim, the appellant quot....
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....ll the conditions enumerated under Note 6A to Chapter 84. Hence, the product is classifiable under 8471 vide SI. No. 360 of Schedule-Ill of Notification No. 01/2017-CT(Rate) dated 28-06-2017 attracts 18%. (n) Enumerating the para-wise comments, the appellant prayed the appellate authority, Tamilnadu to (1) Set aside/modify the impugned advance ruling passed by the Authority for Advance Ruling; (2) Hold that Interactive Flat Panel Displays supplied by the Appellant are rightly classifiable under HSN 84714190; (3) To grant personal hearing; and (4) To pass any such further or other order(s) as may be deemed fir and proper in facts & circumstances as may be deemed fit and proper in facts and circumstances of the case. PERSONAL HEARING 5. The Applicant, was given an opportunity to be heard in person on 03-12-2025. Shri. G. Shivadass, Senior Advocate on behalf of Shri. Prashanth Shivadass of M/s. Shivadass & Shivadass Law Chambers and Authorised Representatives of the Appellant appeared for the virtual personal hearing as scheduled. The Authorised Representatives (AR) of the appellant reiterated the submissions made by the appellant in ....
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....s to store the processed program, to freely program in accordance with the requirements of the user, performing arithmetical computations for achieving a desired output and most importantly, to execute without human intervention, a processing program which requires them to modify their execution by logical decision during the processing run. The use of an ADP machine has the benefits of increased efficiency and speed, reduced human error, handling of vast and large volumes of data and the real-time processing and analysis enhances the user to make swift decision making. 11. From the functionality of an ADP machine its specifications are identified primarily with its processor (CPU or mother board), Memory (RAM), Storage Capacity (SSD/HDD), Graphics card (GPU) and Operating System (OS). Whereas, specifications of an IFPD typically include screen size, resolution, brightness, contrast ratio, response time and wide viewing angles. Other key features are color depth, built-in speakers, various connectivity options, and interactive multi-touch technology. This specification of an IFPD proves to show the primary function of the product. The basic features of an ADP machine is incorpor....
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....ADP machine were same, the trade and industry was not keen on the correct classification of an IFPD. With the changes made in the Budget, 2025-26, CBIC has issued Notification No. 23/2025-Customs dated 04-04-2025 amending SI. No. 515C of Notification No. 50/2017-Customs dated 30-06-2017 to exclude IFPD from the benefit of Import of Goods at Concessional Rate of Duty which resulted in imposition of Basic Customs Duty on IFPDs. As appropriate specific classification is not available for IFPDs, and to distinguish from Monitors, CBIC issued Circular No. 12/2025- Customs dated 7th April, 2025, to alleviate the confusion among Trade and Industry to classify IFPD under 85285900. 16. The analogy drawn by the appellant placing reliance on Circular No. 20/2013-Cus dated 14-05-2013 to the present issue is incorrect as the Tablet Computer is a 'mobile computer', between a laptop and a smartphone i.e, larger than a phone but smaller than a laptop. It is considered as a type of computer as per the technical features and it is designed as substitute for laptop. The calling function of a Tablet computer is only an auxiliary function of the product. Hence, CBIC's Circular classifying the tablet ....