TaxTMI 
TaxTMI 
TaxTMI 
2026 (2) TMI 244
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....ding to serial no. 154 in schedule IV to notification no. 1/2017-Integrated Tax (Rate) dated 28th June 2017. According to the appellant, the dispute is limited to the 'integrated tax' rate applicable, at 18% corresponding to serial no. 384 in schedule III in the same notification as appropriate instead of the charged 28% and, instead of awaiting rectification, already applied for under section 149 of Customs Act, 1962 in letter of 16th February 2023, as prelude to payment of appropriate duty, had decided to discharge the higher levy, 'under protest', against 'speaking order' as required under section 17(5) of Customs Act, 1962. The rejection of their request for amendment, by letter dated 11th April 2023, is cause for two of the appeals while the other two challenge the revision of 'self-assessed' duties of customs to Rs.25,534.20 purporting to be revised assessment. He placed reliance on the decision [final order no. A/86879/2024 dated 18th November 2024 ] of the Tribunal in Philips India Limited v. Commissioner of Customs (Import), Air Cargo Complex (ACC), Mumbai, disposing off appeal [customs appeal no. 87594 of 2023] against order [order-in-original CAO no.CC-GSS/10/2023-....
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....two sub-headings have been distinguished by the following functions of the monitors, viz., (i) being capable of directly connecting to ADP machine (ii) designed for use with ADP machine. In order to further examine the classification in terms of HS explanatory notes of the (World Customs Organization), which describe in detail the scope and coverage of the goods under the Customs classification, the relevant notes were also perused. In terms of HS explanatory notes, monitors capable of directly connecting to and designed for use with ADP machine includes monitors which are capable of accepting a signal from the central processing unit of an automatic data processing machine and provide a graphical presentation of the data processed. These monitors classifiable under sub-heading 8528 52 are distinguishable from other types of monitors and from television receivers by various characteristics/features as follows: (i) they usually display signals of graphics adapters which are integrated in the central processing unit of the ADP machine (ii) they do not incorporate a channel selector on a video tuner (iii) they are fitted with connectors characteristic of dat....
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....trasound equipment, CT scan, MRI scan systems, Digital x-ray machine etc. use monitors which are connected to an ADP machine, in order to compute large amount of data collected during the screening of patients. The computer connected to such medical equipment processes the image that is received in the main machine, and the output from the computer is displayed on the monitor (which are under dispute). Further information available is also stored in the computers connected to the medical equipment, and such stored information/images are displayed in the monitors, for comparison, analysis and for preparation of reports, for viewing in such monitors. Further such monitors can also process like a normal computer for preparation of documents / reports, connecting to the Internet for sending images generated by the medical equipment to the patients, hospitals or the concerned persons. Thus, it clearly demonstrates that the impugned goods can be used as monitors not only for display of images etc. of the medical equipment, but also is monitor for display of ADP machine connected to the medical equipment. 9.8 From the above discussion of the legal provisions of the First Schedule....
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....ssifiable under CTI 8528 5200 only. We find that such a finding in the impugned order passed by the learned Commissioner is contrary to the entry in the notification 384, inasmuch as the entry in column (2) for serial No.384 is heading "8528" and not tariff item "8528 5200". Hence, such a finding is contrary to the legal position and therefore on this ground alone, the impugned order is liable to be set aside, as it does not stand for legal scrutiny. 10.4 In this regard, we find that the Ministry of Finance, Central Board of Excise & Customs (CBEC) had examined the issue of classification of monitors in the context of certain difficulties expressed by trade and industry association in classification of monitors for use with Automatic Data Processing (ADP) machine and consequent import duty exemption benefits available to those goods under Circular No. 33/2007-Customs dated 10.09.2007. The extract of the relevant paragraphs of the said circular is given below: "Circular No.33/2007-Cus. F. No. 528/96/2001-Cus.(TU) Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs 159A, North B....
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....ecided that Board could issue a circular in this regard. 4. Accordingly the technical features distinguishing the computer monitors from the other types of Television/video monitors are enclosed. These could be used by the officers of the field formation as guidance for assessment, examination of the said goods for determining its proper classification and extension of the notification benefit. Comparative chart of physical characteristics of Computer monitors versus Video monitors Computer Monitors TV/ Video Monitors Computer Monitors cannot receive video/TV signals (eg: NTSC, SECAM, PAL) because they do not incorporate a TV tuner. They have DVI*** and/or mini D - Stub connectors to connect to the Central Processing Unit (CPU). TV/Video Monitors receive television signals through a co-axial cable (Svideo input connector). They do not have a mini D - Stub connector Only few ports like VGA*, DVI, USB are provided to receive signals from CPU or storage devices Presence of composite video port, Svideo port** are essential for multi functional screen. These enable the monitors to receive broadcast signals or other video signals from DVD player or vid....
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....into account the customs assessment practices followed during the prevailing time at Air Cargo Complex (ACC), Mumbai, for specifying the various technical features that would enable the customs field officers to distinguish between computer monitors and television/video monitors and to classify the monitors properly. However, we find that these have not been examined so and the impugned order does not even go into such details for arriving at a proper and legally sustainable decision on the issue of classification. Therefore, on this ground also the impugned order is not legally sustainable. 12.1 It is also seen from the facts of the case, that such technical details have been examined in the very same appellants-importer's case on similar product 'colour LCD monitor CR' by the Commissioner of Customs, Air Cargo Complex, Chennai wide Order-in-Original No. 07/2024-AIR dated 12.01.2024 and the data-sheet of the distinguishing specification as per instructions of CBIC have been demonstrated to prove that such monitors are fulfill those technical specifications to be treated as 'computer monitors'. Therefore, we find that the impugned goods are properly classifiable as 'comput....
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.... Subject : Clarification on various Tariff Issues - Regarding. I am directed to say that divergence of practice regarding various Tariff related issues has been brought to the notice of the Board. A number of such matters were discussed at the Tariff Conferences of Chief Commissioners of Customs held at Kolkata on 22nd and 23rd January, 2004 and Shillong from 13th to 15th May, 2004. On the basis of the recommendations of these Tariff Conferences, draft circulars were prepared and put up on the Deptt.'s web-site (www.cbec.gov.in) and also circulated to various trade bodies for giving it wider publicity. Various parties were asked to give their comments and feedback on the draft circulars within 3 weeks. Board has taken decisions on these issues after considering the feedback received. (A) Briefs of such issues and the decisions taken by the Board on the same are enclosed herewith. (B) Field formations may finalise the pending assessments, if any, accordingly. (C) Suitable Public Notices may be issued for the benefit of the Trade. (D) Hindi version will follow. Enclosure (iii) Subject : Eligibility of general purp....
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....n by WCO have been relied upon by the appellants, and it duly support and are in favour of the appellants. The extract of the same is given below: ...' Further, the said decision of the Tribunal relied on another in Ortho Clinical Diagnostics India Pvt Ltd v. Commissioner of Customs (Import) [2022 (9) TMI 1109 - CESTAT MUMBAI] holding that '11. Despite the incorporation in Customs Tariff Act, 1975 of the parallel world corresponding to the new regime, the legality of '7) Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty per cent. as is leviable under section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8).' in section 3 appears to need the simultaneous support of 'Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section....
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.... is reflected in the return which, in turn, is scrutinized by the 'central tax officer' for correctness. 12. The scheme of rule 3(7) of Customs Tariff Act, 1975, therefore, imposes 'integrated tax' on imported goods, at a rate as prescribed under the authority of section 5 of Integrated Goods and Services Tax (IGST) Act, 2017, on value as prescribed in section 3(8) therein which is the arithmetical addition of duties of customs to value for assessment of imported goods and posing no discretionary authority therein. In the light of this being a distinct 'integrated tax', and not an additional duty of customs equal to another duty charged and collected under a scheme of assessment, the adoption of rate claimed by an importer can be disputed only by such officers conferred with authority to do so. Such officers with jurisdiction to intrude into self-assessment are central tax officers. The enabling of levy of 'integrated tax' in Customs Tariff Act, 1975 does not confer any power to intrude upon rate claimed in the bill of entry and 'proper officer', invoking power of assessment or power of recovery under Customs Act, 1962, would be in excess of jurisdiction to venture into de....
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....ks', 'maintenance packs' and 'marker kits' with claim for coverage under serial no. 180 of Schedule I in the 'integrated tax' rate notification owing to specific enumeration in List 1 for the first two items and under serial no. 80 of Schedule II in the 'integrated tax' rate notification owing to description corresponding to it. It is seen that the columnar reference to First Schedule to Customs Tariff Act, 1975 is to 'Chapter 30 or any other chapter', insofar as the former is concerned, and to 'heading 3822' as far as the latter is concerned; considering the specifics therein, the claim for application of these rates of 'integrated tax' respectively is not to be brushed aside. 15. The effect of the proposition of Revenue, in support of the adjudication order, on the part of Learned Authorized Representative is that the impugned goods are not specifically emplaced in the claimed Schedules or in Schedule IV, V and V of the 'integrated tax' rate notification with consequent application of the residuary serial no. 453 corresponding to 'goods which are not specified in Schedule I, II, IV, V and VI' with columnar reference to any Chapter of the First Schedule to Customs Tariff ....
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....' quite clear that the goods are classifiable as "Denatured Salt" falling under Chapter Heading No. 25.01. The Department has not shown that the subject product is not bought or sold or is not known or is dealt with in the market as Denatured Salt. Department's own Chemical Examiner after examining the chemical composition has not said that it is not denatured salt. On the other hand, after examining the chemical composition has opined that the subject matter is to be treated as Sodium Chloride.' and further in Hindustan Ferodo Ltd v. Collector of Central Excise, Bombay [1997 (89) ELT 16 (SC)] that '3. It is not in dispute before us, as it cannot be, that the onus of establishing that the said rings fell within Item 22F lay upon the Revenue. The Revenue led no evidence. The onus was not discharged. Assuming therefore, that the Tribunal was right in rejecting the evidence that was produced on behalf of the appellants, the appeal should, nonetheless, have been allowed. xxxx 7. Learned Counsel for the Revenue submitted that the matter be remanded to the Tribunal so that the evidence on record may be reappreciated. As we have stated, no evidence was le....