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2024 (1) TMI 1167 - AAR - CustomsClassification of goods sought to be imported - Interactive Large Format Display - to be classified under Heading 8528 or under Heading 8471? - HELD THAT - On perusal of the comments of the concerned Commissionerate on the application for advance ruling, it is observed that word Display in the description of item Interactive Large Format Display has caught their attention and same has been made basis to arrive at essential/principal function of the subject goods however, it appears that importance of the word Interactive in the description of the subject goods, has not been discussed much. The word Interactive in the description of the subject goods immediately brings to the front various capabilities of the subject goods and on closer examination, the capabilities of the subject goods meet the requirement under Chapter Note 6(A) of Chapter 84 for a machine to mean as automatic data processing machine . Moreover, once an item has inbuilt input unit, output unit along with processing unit then it is obvious that the item is capable of performing multiple functions - the issue of classification, in the instant application gets settled in terms of Rule 1 and Rule 6 of General Rules for Interpretation of Import Tariff (GRI) without inviting reference to Rule 3 of GRI. It is also noted that a number of rulings and judgments have been quoted by the concerned Commissioner to justify classification under Heading 8528. However, it is felt that judgment of CESTAT, New Delhi in the case of M/s. Ingram Micro India Private Limited 2022 (2) TMI 308 - CESTAT NEW DELHI is the most appropriate, giving detailed explanation for classification of goods similar to the subject goods under Heading 8471. It is also noted that the Customs Authority for Advance Rulings, Mumbai examined the question of classification of similar goods and ruled for classification of such goods similar to the subject goods in sub-heading 8471 41 90, while referring to the Final Order of Hon ble CESTAT, New Delhi in an appeal filed by M/s. Ingram Micro India Private Limited. The proposed items of import namely, Interactive Large Format Display-Model Think Vision T86, T7S, T65 (with camera) T65 (without camera) merit classification under sub-heading 8471 41 90 of the First Schedule to the Customs Tariff Act, 1975.
Issues Involved:
1. Classification of 'Interactive Large Format Display' (Interactive LFDs). 2. Application of Chapter Note 6(A) to Chapter 84 for classification under CTH 8471. 3. Consideration of comments from the concerned Commissioner of Customs, Chennai. 4. Examination of relevant case laws and previous rulings. Summary: 1. Classification of 'Interactive Large Format Display' (Interactive LFDs): The applicant, M/s. Lenovo India Private Limited, sought an advance ruling on the classification of four models of Interactive Large Format Displays (Interactive LFDs) under CTH 8471 as automatic data processing (ADP) machines. The models include ThinkVision Interactive Large Format Display T86, T75, T65 (with camera), and T65 (without camera). These devices feature large screens, in-built CPUs, RAM, Android OS, and various connectivity ports, supporting multiple functions such as Smart Whiteboard and Lenovo Projections applications. 2. Application of Chapter Note 6(A) to Chapter 84 for classification under CTH 8471: The applicant argued that the subject goods meet the conditions under Note 6(A) to Chapter 84, defining ADP machines, and should be classified under CTH 8471. They emphasized that the devices are capable of storing and executing programs, performing arithmetical computations, and modifying execution by logical decisions without human intervention, thus fulfilling the criteria for ADP machines. 3. Consideration of comments from the concerned Commissioner of Customs, Chennai: The Commissioner of Customs, Chennai, contended that the goods should be classified under sub-heading 8528 59 00 as "other monitors." They argued that the devices are not freely programmable, only support applications designed for specific tasks, and primarily function as display systems. They cited Note 6(D) and (E) to Chapter 84, which exclude monitors and projectors from Heading 8471. They also referenced case laws supporting the classification of similar goods under Heading 8528. 4. Examination of relevant case laws and previous rulings: The ruling considered previous judgments and rulings, including the decision by the Harmonised System Committee (WCO) to classify a similar product under sub-heading 8471.60 and the CESTAT, New Delhi's ruling in the case of M/s. Ingram Micro India Private Limited, which classified similar goods under Heading 8471. The Customs Authority for Advance Rulings, Mumbai, had also issued rulings on similar goods under sub-heading 8471 41 90. Conclusion: The Authority ruled that the proposed items of import, "Interactive Large Format Display-Model Think Vision T86, T75, T65 (with camera) & T65 (without camera)," merit classification under sub-heading 8471 41 90 of the First Schedule to the Customs Tariff Act, 1975.
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