TaxTMI 
TaxTMI 
2026 (7) TMI 852
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....QUESTION (S) ON WHICH ADVANCE RULING IS REQUIRED 1.1 Samsung India Electronics Private Limited (herein after referred to as, "Applicant" / "SIEL") is a Company incorporated in India and having its Registered Office at 6th Floor, DLF Centre, Sansad Marg, New Delhi, India - 110001. 1.2 The Applicant intends to import 'Moving Style' in India for further sale. It is further stated that no processing whatsoever would be carried out on the imported goods, post importation into India. Description & Usage of Moving Style 1.3 The Moving Style is an innovative smart device with the versatility of a computing device. Unlike traditional monitors or televisions, it is designed for mobility and interactivity, featuring a detachable stand with wheels and a built-in battery for wireless operation. This makes it ideal for dynamic environments where flexibility and portability are essential, such as collaborative workspaces, educational settings, and home entertainment. 1.4 The device is equipped with a 27-inch LCD screen that supports capacitive touch input, enabling intuitive interaction without the need for external peripherals. It runs on Samsung's proprietary Tizen Op....
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....alities, including app installation and deletion, OTT streaming, and document editing through cloud-based applications. It supports wired and wireless internet connectivity, remote PC access, and screen mirroring for seamless integration with external devices. The touchscreen and virtual keyboard allow for easy navigation and text input, while voice recognition adds convenience. Designed for mobility, the screen can be mounted on or detached from its stand, enabling users to reposition it effortlessly for different use cases such as meetings, presentations, or home entertainment. The Functions and Usage of the Moving Style have been listed below: 1. App Installation/Deletion: Apps can be installed or deleted via Samsung TV Apps (Tizen OS-based app store). 2. Internet & Device Connectivity: Supports wired/wireless network via LAN or Wi-Fi; external devices can connect via HDMI, DisplayPort, Type-C; supports screen mirroring from smartphones. 3. Document Editing via Applications: Through Samsung Smart TV Workspace, remote access to Windows PC, Mac, or mobile devices; supports Microsoft 365 for cloud-based document editing. 4. Touchscreen & Virtual ....
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....Applicant's interpretation of law and / or facts, as the case may be, in respect of questions on which Advance Ruling is sought? 1.15 Questions on which Advance Ruling is sought ▪ Question 1: Whether 'Moving Style' imported into India would merit classification under HSN 8471 as "Automatic 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" ▪ Question 2: Whether the Floor stand imported with the Moving Style in same or a different shipment merit classification under HSN 8473 as "Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8470 to 8472". 1.16 Question 1: Whether 'Moving Style' imported into India would merit classification under HSN 8471 as "Automatic 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" Import of 'Movin....
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....us, to determine the rate of duty on any imported Product, classification at 8-digit or Tariff Item level needs to be identified and the classification has to be determined sequentially i.e., first classification at 4- digit level (Heading) then at 6-digit level (Sub-heading) and finally at 8-digit level (Tariff Item). 1.22 In view of the above, it becomes important to analyse the GRI to determine the proper classification under the CTA. Rule 1 of GRI provides that the classification shall be determined in line with the following which needs to be followed in sequential order. The classification shall be determined according to the terms of headings and any relative Section or Chapter Notes. The relevant text is reproduced as under: "1. The 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 and, provided such headings or Notes do not otherwise require, according to the following provisions:" 1.23 Basis the above, Rule 1 of GIR, classification must be in accordance with the terms of Chapter heading ....
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....: 8471 90 00 - Other 1.27 Automatic data processing machines ('ADPM') and their units are primarily regulated for classification purposes by Note 6 to Chapter 84. Note 6 to Chapter 84 have been reproduced below for ease of reference: "6(A) For the purposes of heading 8471, the expression "automatic data processing machines" means machine capable of: (i) storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme (ii) being freely programmed in accordance with the requirements of the user; (iii) performing arithmetical computations specified by the user; and (iv) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run; (B) Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. (C) Subject to paragraph (D) and (E), a unit is to be regarded as being a part of an automatic data processing system if it meets all of the following conditions : (i) it is of a kind solely or pri....
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....e able to choose between a number of such fixed programs. These machines have storage capability and also stored programs which can be changed from job to job." 1.29 Note 6(A) to Chapter 84 provides that, for the purposes of Heading 8471, "automatic data processing machines" are machines capable of 1. storing the processing program(s) and at least the data immediately necessary for execution of program 2. being freely programmable in accordance with the user's requirements, 3. performing arithmetical computations specified by the user, and 4. executing, without human intervention, a processing program which requires them to modify their execution by logical decision during the processing run. Moving Style satisfies the first condition of Note 6(A) to Chapter 84, which requires the machine to be capable of storing the processing program(s) and at least the data immediately necessary for execution: 1.30 The Moving Style is equipped with a proprietary operating system (Tizen OS) and internal storage components that enable it to store processing programs and essential data required for execution of program. Specifically, the dev....
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.... Delhi 2022 (2) TM 308 - CESTAT New Delhi wherein while determining the classification of view board i.e., Interactive Display System the Court discussed the scope of the phrase "freely programmable in accordance with the requirements of the user". 1.36 The Hon'ble Tribunal, while discussing the capabilities of the machine, explained that a machine which can download and install new programs in accordance with the needs and usage of the user is said to be freely programmable. Relevant extract of the judgment is produced as below for ease of reference. "19. The goods come with a pre-installed operating system, namely, Android 7.0. The said Android version is a customized operating system for these IFP. Further, the goods also have an OPS slot. With the use of the OPS Slot, additional hardware can be connected to the goods and the OPS Slot can also be used for installing other operating software such as Windows, etc. on the goods. Thus, the goods are machines on which the user is able to load and execute a program. In other words, the goods are capable of executing any application/ program which is stored on its memory. A user can, with the use of either Android or ot....
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....#39;s discretion even through controlled mechanisms like OPS slots or developer modes, has generally been treated as satisfying the "freely programmable" criterion under Note 6(A)(ii). 1.41 The Moving Style satisfies this requirement through its Tizen OS, which provides an open environment for application management. Users can install, delete, and execute applications. This includes productivity tools like Microsoft 365, OTT streaming apps, and remote access utilities. The ability to add or remove applications dynamically ensures that the device is not limited to fixed programs, but rather adapts to the user's evolving requirements, precisely the essence of "free programmability" under Note 6(A). 1.42 Beyond app installation, the Moving Style supports remote PC access, enabling users to run programs hosted on external systems, and offers browser-based execution of web applications. This flexibility allows the device to serve multiple roles-entertainment hub or productivity workstation-based entirely on user-selected software. The presence of configurable settings, virtual keyboard, voice input, and peripheral connectivity further enhances programmability, allowing users t....
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....ted by the user. 1.48 Additionally, through integrated support for Microsoft 365 and similar productivity applications, users can create and edit spreadsheets, perform formula-based calculations, and execute data analysis tasks directly on the device. These functions involve arithmetic computations such as addition, subtraction, multiplication, division, and more complex operations like percentage calculations and conditional logic. The Device's ability to handle these tasks demonstrates compliance with the condition that it can perform user-defined arithmetic operations. 1.49 Beyond simple arithmetic, the Moving Style can execute logical operations and data processing tasks required for application workflows, such as sorting, filtering, and conditional formatting in spreadsheets or rendering calculations in graphical applications. These processes involve arithmetic and logical computations specified by the user, reinforcing that the device meets the third criterion under Note 6(A) for classification as an ADPM. Moving Style also satisfy the fourth condition of Note 6(A) to Chapter 84, which requires the machine to execute, without human intervention, a processing prog....
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....ution by logical decision during processing, thereby satisfying Condition 4 of Note 6(A). 1.54 Accordingly, it may be inferred that the Moving Style satisfy all four conjunctive conditions under Note 6(A) to Chapter 84 to qualify as ADPM under Tariff head 8471. 1.55 A Device (classifiable as ADPM under CTH 8471 shall incorporate an input device (mouse / keyboard), a Central Processing Unit (CPU) and a Output device, (Monitor). Generally, earlier they would be presented separately but in modern day evolution, we are getting hybrid devices / computers, where all the three (input, CPU as well as display) are all integrated in a single housing. Such an integrated hybrid system shall qualify as ADPM 1.56 its given that the principal character of the machine is a freely programmable, general-purpose computing device that can join wired/wireless networks, access/manipulate files, run OTT apps and productivity suites, and operate stand-alone with integrated input (capacitive touchscreen/virtual keyboard/voice) and output (LCD and speakers) in the same housing. In the case of Brightpoint (supra) it was held that such interactive systems capable of performing plethora of functions i....
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....as, digital cameras and video camera recorders; (v) monitors and projectors, not incorporating television reception apparatus." 1.60 The Moving Style, as described, is not presented as any of these standalone articles, rather, it is an integrated, freely programmable ADPM running Tizen operating system with CPU, RAM, storage, touch input, and application execution capability. 1.61 The Moving Style is not a printer, copier, or fax machine, nor is it presented as such. It is a touch-enabled smart device that combines display and computing capabilities. While the device includes Wi-Fi and Bluetooth modules for connectivity, it is not presented as a communication apparatus as well. These modules serve to support the general-purpose ADP environment for functions such as app downloads and cloud access, rather than defining a standalone telecom function. Similarly, although the device contains integrated speakers and a microphone, it is not presented as loudspeakers or microphones, rather these components are integral I/O elements that enable voice input and multimedia playback within the ADP framework. The Moving Style is also not a camera or camcorder; it is a touchscreen....
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....nts, access files from USB or the network, and even work on cloud platforms such as Microsoft 365. The device also supports installing and deleting apps, browsing the internet, logging into remote PCs, and mirroring content from phones and laptops. It processes user inputs through the touchscreen, virtual keyboard, and voice commands, and provides outputs through its display and speakers. These everyday functions like typing documents, opening spreadsheets, editing files, running apps, and working online show that the Moving Style is doing active data processing, not just displaying information. Since the users can perform a wide range of computing tasks on it independently, the Moving Style functions as an ADP machine, rather than merely a display device. 1.67 The Product operates as a freely programmable, general-purpose computing device that processes data in its own operating environment (Tizen OS) using an integrated CPU, RAM, and internal storage to run user-selected applications, manipulate files, and execute cloud/web workloads. In other words, the Product utilizes its own operating system that enables document creation, saving, deleting, and editing, content import/expo....
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....n must follow GRI Rule 1 and that Heading 8471 covers ADPM which meet all four conditions of Note 6(A). In assessing the View-Board, CAAR found that the goods have an in-built CPU, RAM, a pre-installed operating system (Android 7.0), and an OPS slot enabling installation of other operating software (e.g., Windows); therefore the device stores programs and data (Note 6(A)(i)), is freely programmable (Note 6(A)(ii)), performs arithmetic computations specified by the user (Note 6(A)(iii)), and executes programs with logical decisions without human intervention (Note 6(A)(iv)). 1.73 CAAR concluded that the View-Board is "much more than mere display devices" and that display is only one feature, not the principal function; the product is an ADP machine itself rather than a unit of an ADP system or a monitor under 8528. The Authority explicitly noted that, in standalone configuration, these devices join wired/wireless networks, access/manipulate files, and perform general computing tasks (browsing, email, office editing), thereby fitting Heading 8471 41 90 (comprising in the same housing at least a CPU and input/output units). 1.74 Likewise, in the case of Ingram Micro (supra), it ....
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....age. The Stand is a standard supplied component along with the Main unit. It is intended to function as a floor-standing movable base for the screen. The Main Unit can be mounted onto the stand or detached from it, and that the stand includes wheels at its bottom surface to enable the user to move the screen easily from one location to another. This indicates that the stand's primary purpose is to provide stable support and mobility for the Moving style display in a "stand-up / movable" configuration. 1.78 The product literature also clarifies that the stand is not necessary for basic "upright placement" of the screen in all circumstances. Specifically, it states that the screen itself has a built- in support (a self-standing support/kickstand), allowing the screen to be placed and fixed in a standing position even without attaching it to the wheeled stand. This reinforces that the stand is an optional convenience accessory for mobility and placement and is not required for the device's core operation. 1.79 The Stand is described as the mounting/mobility base used to attach/detach the Moving style screen and move it via wheels. It is not a universal stand compatible w....
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....y," and that the ordinary/common purpose and use can guide this determination. 1.82 Applying the above judicial principles, the stand supplied for The Moving style should be treated as an accessory. The Moving style is a complete smart device capable of performing its core functions (data processing, app execution, OTT streaming, productivity tasks) independent of the stand; the stand primarily enables the "stand-up/movable" convenience and improves placement and usability. Under the Supreme Court's settled tests, where the main product is complete and functional without the item, the item cannot be a part" (essential component), and at best is an accessory that enhances convenience/effectiveness. 1.83 Now, for determining the HSN classification, the Rule 1 of GIR provides basis for classification of an imported good. The classification shall be determined according to the terms of headings and any relative Section or Chapter Notes. The relevant text is reproduced as under: "1. The 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....
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....ble for use solely or principally with a machine of Heading 8471, under HSN 8473 (typically under the residual sub-heading for parts and accessories of ADPM, i.e., 8473 30 99 "Other", as applicable under the Indian Tariff. Conclusion 1.91 The 'Moving Style' is classifiable under the HSN 8471 as "Automatic 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" A.1.1. and more specifically under subheading 8471 41 90 as "Other automatic data processing machines: Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined: Other". 1.92 The 'Stand' is appropriately classifiable as an accessory suitable for use solely or principally with the Moving style ADP machine under Heading 8473 (Parts and accessories of the machines of heading 8471), as it is not an essential "part" without which the Moving style cannot function, but a supplementary item that enhances usability (stand-up/mobility) and is designed for principal use with the Moving style. Accord....
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....scribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included" b. Whether the Floor stand Imported with the Moving Style In same or a different shipment merit classification under HSN 8473 as Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principal with machines of headings 8470 to 8472", Comments in respect of aforementioned questions a & b- The subject item "Moving Style' is described by Samsung as a LCD touchscreen with cover glass, Detachable screen, wheeled floor stand, built-in battery, Quad-core processor, RAM, internal storage, Tizen OS (Samsung's smart TV/platform OS). It is having connectivity facility such as HDMI, USB-C, Wi-Fi, Bluetooth, screen mirroring etc. It can Install/delete apps via Tizen app store, stream OTT, video/music playback. It is having built-in speakers & microphone. Intended Use of the said product: Collaborative workspaces, educational settings, home entertainment, meetings, presentations mobility. "Next-Gen Office Display Solution" with Hence, it is explicitly positioned as a hybrid smart d....
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...., document editing, etc meets Note 6(A) criteria for ADPM (storing programs, freely programmable, arithmetic, logical decisions). However, many "monitors" or interactive panels have embedded processors/OS for smart features (e.g., Android TVs, smart displays) but remain classified under 8528 when the primary purpose is display/output. Even though the functions of an ADP machines are inbuilt, the subject goods viz. Interactive Display Unit/ Interactive Flat/Intelligent Panel cannot be considered as a simple input or output device and is to be identified with its primary function of display by applying Note 6 (E) of Chapter 84. On similar issue, the decisions held by Apex Court and Hon'ble Tribunal are referred as under: a. Hon'ble Supreme Court in the case of Commissioner of Customs, Bangalore Vs. N.I. Systems (India) P. Ltd. 2010 (256) ELT 173 (SC) wherein Hon'ble S.Court held that, " ... PXI Controller which was a computer based instrumentation product and capable of being controlled by a Personal Computer/Laptop but is not a PC/laptop-principal function of controllers is executing control algorithms for real-time monitoring and cont....
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....hushan, Ms. Ekta Ghildiyal and Mr. Abhishek Kumar Singhania, attended the same and reiterated the same which were already submitted with the application of the applicant. The representatives submitted that the subject product is distinguishable from an Interactive Flat Panel Display (IFPD) on account of several technical characteristics, including its smaller screen size (27 inches), resolution lower than 4K, absence of high-quality built-in speakers, and lower power consumption. The representatives further contended that the product is essentially a large-sized Wi-Fi- enabled tablet and emphasized that the aforesaid specifications are intrinsic characteristics of the product and will remain unchanged. The representatives also filed additional written submissions in rebuttal to the comments furnished by the Port Commissionerate. In response to a query regarding previous imports of the subject goods, the representatives informed the Authority that importation of the product has already commenced through Chennai Port. The representatives undertook to furnish the relevant Bill of Entry for the Authority's consideration. No representative appeared on behalf of the Department.....
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....e 6(D) and 6(E) to Chapter 84 to support its classification view. It has stated that Note 6(D) excludes monitors from Heading 8471 even if they satisfy conditions of ADP machines, and Note 6(E) provides that machines performing a specific function other than data processing should be classified according to their principal function. Applying these provisions, the Department has concluded that the principal function of the product is display and not general-purpose data processing. (iv) The Department has further stated that although the product contains elements such as processor, operating system, RAM and storage, these are only supportive of the display and interaction functions and do not override the core character of the product. It has observed that several modern display devices incorporate smart features or embedded computing but continue to remain classified as monitors where their primary purpose remains display centric. (v) In support of its position, the Port has relied on judicial precedents including the decision of the Hon'ble Supreme Court in Commissioner of Customs v. N.I. Systems (India) Pvt Ltd. and the decision of the Hon'ble CESTAT in ....
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....s fundamentally flawed and vitiates the entire reasoning. A.2. Conclusive satisfaction of Note 6(A) to Chapter 84 A.2.1. The classification under Heading 8471 is primarily governed by Note 6(A) to Chapter 84, which lays down four cumulative and exhaustive conditions for a device to qualify as an ADPM. The Applicant has already demonstrated in detail that the subject goods unequivocally satisfy all four conditions, and notably, the Department has not disputed this factual position in its comments. A.2.2. The Moving Style is equipped with internal storage and memory enabling it to store operating programs and data required for execution. It operates on Tizen OS, which allows for installation, deletion, and execution of applications, thereby fulfilling the requirement of being freely programmable. Further, the device performs arithmetic and logical operations through applications such as spreadsheets, browsers, and productivity tools, thereby satisfying the computational requirement. A.2.3. Additionally, the device executes processing programs autonomously and is capable of modifying execution paths based on logical decisions during runtime, such as....
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.... structure and purpose of the provisions. The relevant extract of Note 6(D) is reproduced for ease of reference: "(D) Heading 8471 does not cover the following when presented separately, even if they meet all of the conditions set forth in paragraph (C): (i) printers, copying machines, facsimile machines, whether or not combined; (ii) apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network); (iii) loudspeakers and microphones; (iv) television cameras, digital cameras and video camera recorders; (v) monitors and projectors, not incorporating television reception apparatus." A.3.3. Note 6(D) excludes certain categories of goods, including monitors, only when such goods are presented separately and retain their independent character as those categories of equipment, even if they meet all of the conditions set forth in Paragraph (C). The exclusion is designed to prevent standalone monitors from being brought within the ambit of ADPM merely because they may be connected to a computer system. The depa....
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....ividual units of an ADP system, and not complete, self-contained ADP machines. In the present case, the subject goods are not "units" presented separately, but are complete, integrated systems comprising: ✓ a central processing unit (CPU), ✓ memory and storage, ✓ operating system, and ✓ input-output interfaces within a single housing. A.3.9. Even otherwise, the condition embedded in Note 6(D), that the goods must be "presented separately" and pose their identity as monitors is not satisfied in the present case. The impugned product is not presented as a standalone monitor, it does not function merely as a display peripheral, and the display component is only one integrated output element within a multifunctional computing system. The display cannot be artificially isolated from the integrated architecture of the machine so as to re-characterize the entire product as a "monitor" for the purposes of exclusion. A.3.10. Accordingly, the Department's approach effectively collapses the distinction between "units" and " ADP machines", and seeks to invoke Note 6(D) beyond its statutory context which is no....
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.....4.4. It is submitted that this user driven, programmable, and multifunctional capability is the defining hallmark of an ADPM as envisaged under Note 6(A). The device does not operate towards a single / specific operational objective, nor is it restricted to a predetermined function. A.4.5. The correct test under Note 6(E) is not whether a device possesses a prominent feature such as a screen, but whether it is functionally dedicated to a purpose other than general data processing, and whether such purpose overrides and displaces its ADP character. In the present case, no such overriding function exists. The display capability merely facilitates user interaction with the computing system and does not alter the essential nature of the product as an ADPM. A.4.6. Accordingly, in the absence of any distinct, specialised, and dominant non- ADP function, the invocation of Note 6(E) is wholly unwarranted. The impugned goods remain, in substance and in law, general-purpose ADPM, and therefore continue to fall squarely within the scope of Heading 8471. A.5. Incorrect application of "principal function test" A.5.1. The Department has sought to apply the "p....
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....d., 2022 (2) TMI 308 - CESTAT NEW DELHI which dealt with an almost similar product configuration involving interactive display systems. The Hon'ble CESTAT held "The large size display (65 inches and 75 inches) is only a feature/specification of the product and this cannot be construed to be its function, much less its principal function. The Deputy Commissioner and the Commissioner (Appeals), therefore, committed an error in holding that the large size of display would mean that the goods are meant for display purpose to a large gathering and, therefore, in terms of Note 5(E) of Chapter Note 84, the goods would merit classification as per the specific use" Copy of said ruling has been enclosed as Annexure A The above finding lays down a crucial and binding understanding that there is difference between a feature and a function. A.5.5. It is submitted that a feature is a characteristic, attribute, or component of a product. Whereas a function refers to what the product fundamentally does in terms of its operational purpose. A.5.6. Applying this understanding, it is evident that a display, irrespective of its size, resolution, or promi....
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....uting system. These components do not define the function of the device; rather, they facilitate and operationalise its data processing / computing capability. The ability to install applications, execute software, and perform diverse user-driven tasks clearly establishes that data processing is the dominant and defining function and rest other features are supplementary. A.5.11. The Department's reasoning, if accepted, would lead to manifestly absurd consequences. By equating the presence of a display with a "principal display function", even devices such as laptops, desktops, tablets, and all-in-one computers, each of which contains a display, would be liable to classification as "monitors". Such an interpretation would collapse the distinction between Heading 8471 and Heading 8528 and render the statutory scheme unworkable. A.5.12. Accordingly, the Department's reliance on the "principal function test" is legally unsustainable. The correct application of law requires that the product be evaluated based on its core functionality, which, in the present case, clearly establishes that the "Moving Style" is a general-purpose Automatic Data Processing Machine....
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....Viewed holistically, the "Moving Style" is not a passive display apparatus but an active data processing machine that happens to incorporate a display as one of its output interfaces. The essential character of the product is derived from its computing capabilities, and not from its ability to display content. Consequently, it falls outside the scope of Heading 8528. A.6.6. Accordingly, the attempt of the Department to classify the impugned goods under Heading 8528 is legally unsustainable, as it disregards the fundamental distinction between independent computing systems and passive display devices. A.7. Assuming, without prejudice, that the Goods are IFPDs as contended in Port comments, the appropriate classification would still fall under Heading 8471 (ADP Machines) A.7.1. In the Comments dated 08 May 2026, the Department has equated the subject goods "Moving Style" with Interactive Flat Panel Displays (IFPDs) / interactive intelligent panels. The relevant extract from the Port's comments is reproduced below: "It is explicitly positioned as a hybrid smart device bridging a smart display and interactive computing system. In view of the abov....
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.... computing tasks, derives its functionality from software- driven user instructions and operates independently of external computing systems. Whereas IFPDs are designed primarily for interactive display and group collaboration, perform display-centric functions, with computing capabilities being ancillary and are typically deployed as presentation or teaching tools A.7.8. The Department's attempt to equate Moving Style with IFPDs has led to an incorrect application of the "display-centric" classification approach under Heading 8528. Such conflation ignores the computing-centric architecture of the product, misapplies the principal function test and leads to classification based on form factor rather than functionality. A.7.9. Without prejudice to our aforementioned submissions, we submit that even if the Moving Style is to be regarded as IFPD by the Department, the correct legal classification would be Heading 8471 as Automatic Data Processing Machines. A.7.10. Reliance is placed on the judgment of the Supreme Court of India in the case of Commissioner of Customs, Nhava Sheva-V versus BenQ India Private Limited, by Order dated 23 February 2026, in Civ....
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..... Furthermore, central processing unit along with operating system software of the IFPs executes the commands given by the user by taking logical decisions, without further intervention by user. Therefore, all the pre-requisites of: (i) storing processing programme or programmes, and at least the data immediately necessary for the execution of the programme; (ii) being freely programmed in accordance with the requirements of the user; (iii) performing arithmetical computations specified /by the user; and (iv) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run, are fulfilled by the Interactive Flat Panels, which have been imported by the respondents in the present case. From the above analysis, we are of the considered view that the impugned goods are appropriately classifiable under CTI 8471 4190." The copy of the said ruling has been attached as Annexure B and the copy of the SC ruling has been attached as Annexure C. A.7.13. A similar position has been reiterated by the Hon'ble Supreme Court in the case of Princ....
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....In the NI Systems case, the goods under consideration were Programmable Automation Controllers (PACs), PXI controllers, and I/O modules, which were designed and engineered for industrial measurement and process control systems. The Hon'ble Supreme Court specifically noted that the goods were "manufactured for a special purpose" and were intended for measurement or control functions in industrial environments. A.8.3. The Court further observed that: * The controllers executed control algorithms for real-time monitoring and control of industrial processes * The hardware was dedicated to measurement and control applications * The goods functioned as part of a larger functional unit involving sensors and control systems Thus, the imported goods were not general-purpose computing machines but highly specialized industrial equipment. A.8.4. The Hon'ble Supreme Court applied Note 6(E) (then Note 5(E)) and held that where a machine performs a specific function other than data processing, classification must follow that specific function. The Court held that PACs and controllers were not ordinary ADP machines but devices designed....
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....grammable, perform multiple general-purpose computing functions, and are not tied to a specific function, must remain within Heading 8471. The Moving Style squarely falls within this latter category. A.8.12. Accordingly, it is submitted that the reliance placed by the Department on NI Systems is entirely misconceived. The said judgment applies only to specialized industrial controllers forming part of functional units performing specific functions, and cannot be extended to general-purpose computing devices such as the Moving Style. A.8.13. The Department has also relied upon the decision of the Hon'ble CESTAT in Commissioner of Customs vs. Integral Computer Ltd., 2016 (337) E.L.T. 580 (Tri .- Del) [07-04-2016] dated 7 April 2016, to contend that interactive display devices should be classified under Heading 8528. It is respectfully submitted that this reliance is equally misplaced, as the facts and findings in that case are materially distinguishable. Copy of the said ruling has been enclosed as Annexure F. A.8.14. In the Integral Computer case, the product in question was an "interactive electronic whiteboard", which was described as a teac....
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....and Integral Computer (CESTAT), are factually and legally distinguishable and do not support the Department's case. On the contrary, when correctly interpreted, these decisions reinforce the principle that only those devices which are dedicated to a specific function or dependent on external systems fall outside Heading 8471. Since the Moving Style is a integrated computing enabled device, it squarely falls within the ambit of Heading 8471. A.9. Marketing description does not necessarily determine HSN classification A.9.1. The Department has sought to contend that "The Device is marketed and used as a movable interactive panel, not a general-purpose computer. It bridges "smart display and interactive computing" but remains display centric". It is submitted that such reasoning is legally untenable, as it seeks to conclude its determination of classification based on how the product is marketed or positioned, rather than on its intrinsic functional characteristics. A.9.2. It is a settled principle of classification law that the manner in which a product is marketed, branded, or described by the manufacturer does not necessarily determine its classificat....
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....nted separately", and hence is not excluded under Note 6(D), and it does not perform any specific, pre-defined non-ADP function, and thus Note 6(E) has no application. A.9.7. Accordingly, once the product satisfies the statutory conditions of an ADPM and is not excluded by any of the relevant Chapter Notes, its classification must be determined under Heading 8471 based on its essential character as a data processing machine. The Department cannot ignore this statutory analysis by relying on marketing descriptors or perceived positioning of the product for classification purposes. A.9.8. The Department's approach effectively seeks to substitute the statutory test of classification with a marketing-driven test. If such an approach were accepted, classification would become contingent on how a product is described in brochures or advertisements, leading to uncertainty and subjectivity. A.9.9. Accordingly, the contention that the product is "display-centric" based on its marketing is not the sole determinant for classification purposes. The impugned goods must be classified on the basis of their functional characteristics and HSN classification rules, whi....
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....te and controller IC. * Printed Board Assembly: Printed Circuit Board with integrated components to run operating System. * Timing Controller (TCON): Converts video signals for panel operation and controls pixel timing. * Battery: Built-in 69WH battery; supports charging via USB-C external battery. * Wireless Modules: Wi-Fi, hotspot, Bluetooth connectivity. * Ports: HDMI x1, USB-C x2. * Audio: Built-in speaker and microphone. * Frame: Plastic. 5.2.2 The Specifications of the 'Moving Style' are as under :- * Operating System: Tizen Smart TV * CPU: PONTUS-M Quad Core CA72 @ 1.7GHz * Data Transfer Rate: Up to approx. 25.6GB/s (memory bandwidth) * RAM: LPDDR4 64-bit 1.6GHz x 2, 4GB * Internal Storage: eMMC 16GB * Flash Memory: 2MB 5.2.3 The functionality of the 'Moving Style' are as under :- As per the applicant, the Moving Style provides a wide range of functionalities, including app installation and deletion, OTT streaming, and document editing through cloud-based applications. It supports wired and wireless internet connectivity, remote PC access....
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....yle display in a "stand-up / movable" configuration. Issue of classification: 5.3 The question for determination before me is whether the 'Moving Style' merit classification under CTH 8471 as claimed by the applicant or under Heading 8528 as suggested by the port. Also, whether the 'Floor stand' imported with the Moving style merit classification under CTH 8473 as claimed by the applicant or under Heading 8529 as suggested by the port. The competing tariff headings covers the following :- * CTH 8471 - "Automatic 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" * CTH 8473 - "Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with the machines of headings 84.70 to 84.72" * CTH 8528- "Monitors and projectors, not incorporating television reception apparatus;" 5.3.1 The Relevant HSN Explanatory Notes to Tariff Heading 8471 is as follows :- Note 6 to Chapter 84 is as under: (A) For the purposes of ....
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....espective functions or, failing that, in residual headings." Note 3 to Section XVI 3 .- Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. 5.3.2 The Relevant HSN Explanatory Notes to Tariff Heading 8473 is as follows :- Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), this heading covers parts and accessories suitable for use solely or principally with the machines of headings 84.70 to 84.72. The accessories covered by this heading are interchangeable parts or devices designed to adapt a machine for a particular operation, or to perform a particular service relative to the main function of the machine, or to increase its range of operations. The heading includes : (I) Form feed devices for the continuous feeding of stationery into typewriters, account....
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....ripods and similar articles (heading 96.20). 5.3.3 The Relevant HSN Explanatory Notes to Tariff Heading 8528 is as follows :- This heading includes: Monitors and projectors, not incorporating television reception apparatus Television reception apparatus, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus, for the display of signals (television sets.) Apparatus for the reception of television signals, without display capabilities (e.g. receivers of satellite television broadcasts). Monitors, projectors and television sets utilize different technologies, such as CRT (cathode-ray tube), LCD (liquid crystal display), DMD (digital micromirror devices), OLED (organic light-emitting diodes) and plasma to display images. Monitors and projectors may be capable of receiving a variety of signals from different sources. However, if they incorporate a television tuner are considered to be reception apparatus for television 5.3.4 The Relevant HSN Explanatory Notes to Tariff Heading 8529 is as follows :- Subject to the general provisions regarding the classification of par....
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....g programs, freely programmable, arithmetic, logical decisions). Further, I also note that as per Chapter note 6 (D), heading 8471 does not cover monitors and projectors not incorporating television reception apparatus when presented separately even if they meet ADP conditions. 5.4.1.1 Further, I also observe that Note 6(E) to Chapter 84 provides that machines incorporating or working in conjunction with an Automatic Data Processing (ADP) machine, and performing a specific function other than data processing, are to be classified under the tariff heading appropriate to their respective principal function (or, where no such heading exists, the relevant residual heading). Accordingly, the mere incorporation of, or operation in conjunction with, an ADP machine does not warrant classification under Heading 8471. The decisive criterion is the principal function performed by the machine. 5.4.1.2 The subject product, comprises of an LCD touchscreen panel with protective cover glass, mounted on a detachable wheeled floor stand and powered by an integrated rechargeable battery for portable operation. The device incorporates an embedded quad- core processor, volatile memory (RAM), inte....
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....ntext otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. 5.4.2.1 I observe that Moving Style is not a conventional laptop or desktop PC. It is explicitly positioned as a hybrid smart device bridging a smart display and interactive computing system. The principal function of Moving style is to display interactive presentation (touchscreen output for groups), not standalone general-purpose data processing like a PC. Computing elements (processor, OS, RAM) enable the display/interaction but do not override this. The addition of wheels does not change its essential character as an interactive display unit for group viewing and collaboration. 5.4.2.2 1 also note that the applicant emphasizes that the Tizen Operating System, Quad- core processor, RAM/storage, facility of app installation, document editing etc. meets the criteria of Note 6 (A) to Chapter 84 for ADPM (storing programs, freely program....
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.... directly connecting and designed for use with an automatic data processing machine of heading 8471 8528 49 90 -- Other - Other monitors: 8528 52 00 -- Capable of directly connecting and designed for use with an automatic data processing machine of heading 8471 8528 59 00 -- Other On perusal of the above entries, it is observed that the product, 'Moving style' is not in the nature of Cathode Ray tube monitors, hence it would not be classifiable under CTSH 8528 42 or 8528 49. Further, it is also not designed for use with automatic data processing machine (CTH 8528 52 00) and hence it merits classification under residuary heading under 'Other Monitors' and especially under CTH 8528 5900. 6.1 I find that the port has also agreed that the 'Moving Style' merit classification under CTH 8528 5900. 7. Classification of 'Floor stand' of Moving style It is evident that CTH 8529 covers "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528". I also note that Subject to the general provisions regarding the classification of parts (General Explanatory Note to Section XVI)....