TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 1558
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....ion Notification No 24/2005 dated 01.03.2005 as amended. The models of Monitors intended for import are as below: Table-1 SI. No. MODEL NO. SI. No. MODEL NO. SI. No. MODEL NO. 1 VX2428 7 VX2728J 13 VP16-OLED 2 VX2428J 8 VX2776-sh 14 VP2456 3 VX2476-sh 9 VX2776-smhd 15 VP2468a 4 VX2480-2K- SHD 10 VX2779-HD- PRO 16 VP2756-4K 5 VX2480-SHDJ 11 VX2780-2K- SHDJ 17 VP2768a 6 VX2728 12 XG2431 2. Submission by the Applicant: 2.1 The applicant is a registered private limited company involved in the business of trading of computer and computer accessories/ peripherals. The applicant is intending to import "computer monitors" (model numbers and literature submitted through application) from China. The subject goods are computer monitors which are capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471. The technical characteristics of the computer monitors proposed to be imported is mentioned in the enclosed literature, which is filed along with the present application. The applicant is of t....
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....10/11, Mac OS DisplayPort x 1, HDMI X 2 8 VX2776-sh 250 cd/m2 0.311mm 0.311mm(H) X 0.311mm(V) 1920 X 1080 15 - 83KHz TILT YES YES YES Windows 10/11, Mac OS VGA x 1, HDMI X 2 9 VX2776-smhd 250 cd/m2 0.311mm 0.311mm(H) X 0.311mm(V) 1920 X 1080 15 - 82KHzk TILT YES YES YES Windows7/8.1/10/11 Mac OS VGA X 1, DisplayPort x 1, HDMI X 1 10 VX2779-HD-PRO 220 cd/m2 0.311mm 0.3108mm(H) X 0.3108mm(V) 1920 X 1080 TILT YES YES Windows 10/11, Mac OS DisplayPort x 1, HDMI X 2 11 VX2780-2K-SHDJ 250 cd/m2 0.233mm 0.233mm(H) X 0.233mm(V) 2560 X 1440 24 - 113KHz TILT, SWIVEL,PIVOT,HIGHT YES YES YES Windows 10, Mac OS DisplayPort x 1, HDMI X 2 12 XG2431 350 cd/m2 0.275mm 0.275mm(H) X 0.275mm(V) 1920 X 1080 15 - 255KHz TILT, SWIVEL,PIVOT,HIGHT YES YES YES Windows7 /8.1/10/11, Mac OS USB X 3, DisplayPort x 1, HDMI X 2 13 VP16-OLED 400 cd/m2 0.179mm 0.179mm(H) X 0.179mm(V) 1920 X 1080 24 - 83KHz TILT YES YES YES Windows 10/11, Mac OS USB X 2, Micro HDMI X 1 ....
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....7 and there has been much advancement in technology, the said Circular may still be relevant to decide, with respect to certain parameters, as to whether a monitor could be considered to be a computer monitor or a video monitor. One important factor is regarding the brightness parameter. The Board has clarified that computer monitors are characterized by low emission standards (brightness of 400 CD/m^2 or less). In the present case, as is evident from the enclosed literatures, the brightness of all the models of computer monitors does not exceed 400 CD/M2 and this fact can be ascertained on a perusal of the enclosed literatures. Similar, the display pitch size is generally small and usually of 0.28 mm of less. This parameter is also satisfied in all the monitors under import. However, it is pertinent to note that certain models have a display pitch of 0.31 mm but in any case, the display pitch is lesser than 0.41 mm, which is the specification of TV/video monitor as per Board's Circular dated 10.09.2007. The horizontal frequencies of a computer monitor are generally in the range of 15 to 155 KHZ and this parameter is also satisfied in all the computer models under consideration....
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.... data from an automatic data processing machine of heading 84.71. It is submitted that all the monitors under consideration match the above specifications and therefore, even as per the HSN Explanatory Notes, the subject monitors are of a kind that is used exclusively and primarily with an automatic data processing machine. 2.3.5 It is submitted that in the case of In Re: Sharp Business System (India) Pvt. Ltd, reported in 2022 (381) ELT 565 (A.A.R-Cus-Del), the Hon'ble Customs Authority for Advance Rulings, New Delhi was called upon to decide the classification of LCD monitors and the Hon'ble Authority held that the monitors containing SD card slot, D-sub input, DVI-D input/output, HDMI input and USB port would be classifiable under heading 8528 5200. It is further submitted that in the case of In Re: Gurmat Impex and Services reported in (2023) 6 Centax 116 (A.A.R-Cus-Mum), the Hon'ble Customs Authority for Advance Ruling, Mumbai was called upon to decide the classification of six models of ViewSonic Brand LCD monitors, which are also subject matter of the present application. After studying the technical parameters, the Hon'ble Authority came to a conclusio....
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....2.1 It is submitted that all the models of the product in question has the aspect ratio of 16:9. During the hearing, a query was raised referring the Circular No. 33/2007-Cus dated 10.09.2007, wherein the specification for computer monitor was prescribed as 16:10 and for video monitors as 16:9. At the outset, it is submitted that the parameters or specifications provided in the said Circular was based on technology. prevailed during the said period i.e. 2007. It is pertinent to mention that there is advancement in technology and 16:9 has become the standard aspect ratio of the computer monitors globally. 4.2.2 It is submitted that the "DisplaySearch", a Company involved in display market research released a report advice on July 1, 2008 that the display market is driving towards 16:9 aspect ratio for laptops and monitors and 67% of the LCD panels for monitors would shift from 16:10 to 16:9 by 2012. Copy of the webpage is enclosed as Annexure - A. Further, an article was published in HandWiki regarding 16:9 aspect ratio, which states that 16:9 ratio became the commonly used aspect ratio in 2011. Copy of the said webpage is enclosed as Annexure - B. In the recent times, almost all....
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....that how the gaming modules are to be connected to the monitors. However, it is observed that connect-ability to these ports with Non ADP machine is not categorically denied. 5. Reply from jurisdictional Commissionerate: 5.1 Jurisdictional Commissionerate through their letter dated 18.03.2024 issued vide F. No. CUS/APR/APPL/44/2024-GR 5A has inter-alia stated that: i. The subject monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71, are to be declared under heading 85285200. From the technical literature for the list of monitors, it is observed that the monitors are having connectors HDMI, VGA, USB etc, which as per Circular 33/2007-Cus dated 01.09.2007, are categorized as computer monitors that have the capability of connecting to and designed for use with an automatic data processing machine of heading 84.71. As per the technical literature provided by the applicant the listed model, have VGA and/or HDMI connectivity and can be classified under 85285200. ii. This Commissionerate is of the view that the subject goods are not eligible for exemption under SI. No. 17 of Notification No. 24/2....
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....rs designed for other uses have a high emission standard as they are to be viewed at a distance. The subject goods have physical. Control buttons on front panel in all the models and have various ergonomic features such as tilt, swivel, height adjusting mechanism, glare free surfaces and flicker free display. They are compatible in utilizing wireless communication protocol, with additional accessories and are capable of accepting signal from CPU of an ADPM and providing a Graphical presentation of the data processed. Further, it is claimed by the applicant that, they are not incorporated with technical features as seen in TV/Video Monitors like built-in USB drives, SD Card, touch screen capability, television tuner, channel selector, video tuner and remote-control facility. The applicant has contended that the subject goods have all the above characteristics in the above computer monitors and they are rightly classifiable under Chapter heading 85285200 of Customs Tariff Act, 1975 and not under 8528 59 00, and attract eligibility benefit of exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended. 7.2 I find that the applicant has drawn attenti....
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....les for classification of goods are governed by the Harmonized Commodity Description and Coding System (Harmonized System or HSN) and the General Rules for Interpretation specified thereunder. In terms of GIR Rule 1, "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." The applicant has stated that the subject goods are classifiable under CTH 8528 as Monitors capable of directly connecting to and designed for use with an Automatic Data Processing System (hereafter known as ADPS) of heading 8471. Accordingly, I proceed to verify the classification of goods under sub heading 8528 52 00, as requested by the applicant. 8.2 Chapter heading 8528 stipulates that, "Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus". This heading is further subdivided into four 1-dash subheading. These subheading covers, inter alia, monitors, that are sub-categorized a....
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....ibing data onto data media in coded form and machines processing such data, not elsewhere specified or included." 8.5 Paragraph 6(D) inter alia specifies, that heading 8471 does not cover, "Monitors, not incorporating television reception apparatus" when presented separately. And paragraph 6 (E), states that, "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. 8.6 I find that as per paragraph 6(D) & 6(E), Monitors, not incorporating television reception apparatus when presented separately, cannot be classified under Chapter heading 8471 and have to be classified in the headings appropriate to their respective functions. Accordingly, by virtue of terms of the headings, relative Chapter Notes and HSN Explanatory notes, I find that the subject goods meet essential conditions to merit classification under Chapter sub heading 8528 52 00 as, "Monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471". ....
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....THER OR NOT INCORPORATING RADIO-BROADCAST RECEIVERS OR SOUND OR VIDEO RECORDING OR REPRODUCING APPARATUS - Other monitors: 8528 5200 -- Capable of directly connecting to and designed for use with an automatic data processing system of heading 8471. As far as all the models in question (including the two elaborated above) are concerned the applicant is silent and did not categorically deny that the ports other than USB viz. HDMI, VGA, DVI etc. can not in any manner be used for the purposes other than those of satisfying the condition under Sr. No 17 of the exemption Notification No. 24/2005-Cus dated 01.03.2005 as amended. For the ease of reference provision contained in the Sr. No 17 of Notification No 24/2005-Cus dated 01.03.2005 is reproduced as below: 17. All goods of a kind solely or principally used in an automatic data processing system of heading 8471. On going through the wordings used in the exemption Notification it can safely deduced that there may be two sets of systems that can be used in the said import goods/monitors. One which can be an Automatic data processing system of heading 8471 and the other Non ADP machine/system. In the i....
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....HDMI are used both for Video and audio. Streaming device like a ROKU or Amazon Fire TV Stick can be easily plugged in these subject monitors through HDMI ports. Such modern game console, streaming devices etc. cannot be called as an ADP machines or Part of an ADP Machine. It is further observed that the other ports namely VGA, DVI, USB can also be used to connect such monitors to a Non-ADP Machines either. 10.4 The wordings used in the tariff heading for the purpose of classification of the subject goods and to avail exemptions thereon under Sr. No 17 of the exemption Notification No. 2.4/2005- Cus dated 01.03.2005 are on different footings and cannot be said to be one and the same. After studying the characteristics and technical specification it can be seen that these monitors are equipped with advance features like HDMI, VGA, DVI and USB etc. that can substantially be used for other than the use than that of an ADP Machine. The Hon'ble Supreme Court in its judgment dated 05.05.2021 in case of Civil Appeal No. 3123 of 2020 has observed as below: 10. In the 183rd Report of the Law Commission of India, Justice M. Jagannadha Rao observed that a statute is a will o....
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....rt), Mumbai vs. Dilip Kumar & Company) has ordered as verbatim: 41. After thoroughly examining the various precedents some of which were cited before us and after giving our anxious consideration, we would be more than justified to conclude and also compelled to hold that every taxing statute including, charging, computation and exemption clause (at the threshold stage) should be interpreted strictly. Further, in case of ambiguity in a charging provisions, the benefit must necessarily go in favour of subject/assessee, but the same is not true for an exemption notification wherein the benefit of ambiguity must be strictly interpreted in favour of the Revenue/State. .. 52. To sum up, we answer the reference holding as under - (1) Exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. (2) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in f....