TaxTMI 
TaxTMI 
2024 (8) TMI 1761
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....mpugned Order, the 1st Respondent has concluded that the computer monitors of various modes which the Petitioner proposed to import were classifiable under Heading 8528 52 00 of the Customs Tariff Act, 1975. It now holds that the Appellant will not be eligible for the benefit of exemption under Sl.No.17 to Notification No.24/2005-Cus dated 01.03.2005 as amended by Notification No.67/2016- Cus dated 31.12.2016. 5. Relevant portion of the Impugned Order of the 1st Respondent reads as under:- "4.4 The representative of the Importer also demonstrated two models of the monitors in the subject applications i.e. XG2431 and VP2468a on April 10, 2024. The demonstration was made to show that the availability of the USB ports does not change the nature of the monitors and further, the subject monitors are functional only by connecting to an Automatic Data Processing machine. Pursuant to the same, the Applicant was directed to submit the functionality of all the ports in the subject monitors. In compliance with the same, the Applicant has spelt out the ports available in the subject monitors and their respective function in their letter dated April 16, 2024. Vide said letter the ap....
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....ing device (in fact some models as illustrated above also de-facto gaming devices), home theatre etc. High Definition Multimedia Interface (HDMI) is data transmission standard device that connects a data source such as CPU or a set top box to an output device such as television, projector, desktop monitor, laptop, speakers etc. It provides an interface between any audio Video sources such as set top box, DVD Player or A/V receiver, Audio Video Monitor such as digital television etc. HDMI is one of the most useful and most common port. The HDMI port can be used for video, audio, computers as well as in Smart TV. The devices that can he associated/connected with these HDMI ports may be as follows: i. Modern Game Console ii. Media Players iii. DVRS iv. Sound Systems v. Computers vi. Streaming Devices 10.3 From the wording used in the Sr. No. 17 of the exemption Notification No. 24/2005- Cus dated 01.03.2005 it is quite clear and un ambiguous that only those Computer Monitors qualify for exemption when solely or principally used in an ADP System of heading 8471. Contrarily, in the instant case the subject monitors can also ....
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....irectly connected to and as designed principally for use with automatic data processing machine of Heading 8471 which has been accepted by the 1st Respondent / Customs Authority for Advance Rulings. 7. It is submitted that mere presence of High Definition Multimedia Interface (HDMI), Video Graphics Array (VGA) and Digital Visual Interface (DVI) in the monitor ipso facto would not mean that the digital monitor that were proposed to be imported by the Petitioner by filing application before the 1st Respondent import exemption under Sl.No.17 to Notification No.24/2005Cus dated 01.03.2005 as amended by Notification No.67/2016- Cus dated 31.12.2016 was not available to the Appellant. 8. It is submitted that during the course of the proceedings before the 1st Respondent, the Appellant was called upon to furnish the following information by the Secretary of the 1st Respondent vide E-Mail dated 28.02.2014:- i. Whether the models covered (having USB ports) in these 2 application can function by themselves (Standalone basis) or not? ii. Pl inform how these models are to be connected to the ADPM and details of ADPM thereof? 9. It is submitted that the 1st Respondent....
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....fit of Sl.No.17 to Notification No.24/2005-Cus dated 01.03.2005 as amended by Notification No.67/2016- Cus dated 31.12.2016. has been extended to the Appellant:- Sl.No. Date Bill of Entry No. 1. 07.05.2024 3373848 2. 07.05.2024 3373316 3. 07.05.2024 3372760 4. 31.05.2024 3760438 16. It is further submitted that the 1st Respondent has failed to appreciate that the subject products are connected to Automatic Data Processing Machines through HDMI, VGA and DVI ports. Further the averment that the findings of the 1st Respondent is contradictory and consequently, the denial of the benefit of the exemption notification is neither liable to be interfered nor incorrect. 17. Opposing the prayer, the learned counsel for the Respondent would submit that the Writ Petition is devoid of merits. 18. The learned counsel for the Respondent would specifically draw attention to the decision of the Hon'ble Supreme Court in the case of Columbia Sportswear Company vs. Director of Income Tax, Bangalore, (2012) 11 SCC 224. He submits no appeal is maintainable. 19. The learned counsel for the Respondent would submit that only remedy that is availa....
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....dule to the Customs Tariff Act, 1975. Due to HS 2007 changes brought into effect from 01.01.2007, such monitors are presently classifiable under sub heading 8528 40. All types of monitors and projectors which are solely or principally used with an ADP machine is covered under the sub headings 8528 41(Cathode Ray Tube Monitors), 8528 51(Other types) and 8528 61(Projectors) and are extended with exemption of customs duty vide Sl.No.17 of notification No.24/2005-Customs dated 01.03.2005. Further, television or video monitors were classifiable earlier under heading 8528. Presently these monitors used as Television or Video reception apparatus are classified under sub heading 8528 71 or 8528 72 as the case may be, and are not eligible for the aforesaid exemption." 26. The learned counsel for the Respondent would further submit that in the Impugned Order, the 1st Respondent in Paragraph 8.7 has referred to description of the model in the Appellant's Website. 27. It is submitted that the monitor aids in additional gaming features and therefore the subject products do not satisfy the principal function of delivering the out put from the Automatic Data Processing Machines. 28. ....
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....n/Video reception and are not designed for use with an Automatic Data Processing Machine of Heading 84.71 alone are outside the purview of Sl.No.17 to Notification No.24/2005-Cus. dated 01.03.2005. 35. As per the technical literature provided by the appellant, the listed models having VGA and / or HDMI connectivity can be classified under 85285200". Therefore, the imported monitors by the Petitioner are indeed i.e., exclusively or principally used in an Automatic Data Processing System (ADP System) of Heading 8471. 36. Mere presence of High Definition Multimedia Interface (HDMI), Video Graphics Array (VGA), Digital Visual Interface (DVI) and merely because the subject monitor can be connected with other devices ipso facto would not render the monitor that was proposed to be imported by the Petitioner not capable of being used with the Automatic Data Processing System (ADP System) of Heading 8471. The imported monitor is classifiable under Tariff Item/Heading 8528 52 00. 37. The expression "principally used" would mean "primarily used". Merely because the monitor can also be used with other devices would not render a monitor ineligible to the benefit of Notification. The te....