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2025 (7) TMI 1414 - AT - CustomsClassification of imported goods - LCD monitors for use with medical equipment - to be classified under Customs Tariff Item (CTI) 8528 5200 or under CTI 8528 5900? - applicability of Serial Nos. 383C 384 of Schedule-III to N/N. 01/2017-Integrated Tax (Rate) dated 28.06.2017 - appropriate levy of customs duty i.e. additional duty of customs - HELD THAT - If a monitor is capable of accepting signals from an ADP machine and providing a graphical representation of the data presented it will be treated as a monitor classifiable under CTI 8528 5200 since such monitors fulfil the twin conditions of capable of directly connecting to ADP machine and designed for use with ADP machine . In other words whether a monitor is having the technical specifications by which it can be connected to an ADP machine is the determining factor for its classification under CTI 8528 5200 and not the actual use for which these are being put to in each of the situation where such monitors are used. The facts on record indicate that various medical equipment such as Ultrasound 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) - 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. From the discussion of the legal provisions of the First Schedule to the Customs Tariff Act 1975 and the explanation of coverage of products given in the Explanatory notes of HS of the WCO it is opined that the impugned goods are appropriately classifiable under CTI 8528 5200 and not under CTI 8528 5900. From the facts of the case it is also indicated that the appellants had classified the monitors incorrectly under CTI 8528 5900. However since the applicable BCD for both sub-headings of 8528 52 and 8528 59 remain the same such incorrect classification have not resulted in any duty difference with respect to basic customs duty leviable under Section 14 of the Customs Act 1962 read with Section 2 of the Customs Tariff Act 1975 - As the impugned goods are of display screen not exceeding 32inches and are used with or connected to the ADP machines it is found that the appropriate IGST leviable on the impugned goods are at 18% and not 28% as held in the Impugned order. On a similar set of facts in the case of Ortho Clinical Diagnostics India Pvt. Ltd. 2022 (9) TMI 1109 - CESTAT MUMBAI the Co-ordinate Bench of the Tribunal has dealt with the similar issue of levy of additional duty of customs as per the entries in the IGST N/N.01/2007-Integrated Tax (Rate) dated 28.06.2017 and have held that there is no scope of perceiving the said notification as an exemption notification. Since the dispute in the present case relate to levy of additional duty of Customs (IGST) on imports during the period 29.07.2017 to 26.02.2022 such amended provisions do not have any application on the demand of differential additional duty of customs adjudged by the impugned order. Therefore it is opined that on this ground alone the impugned order does not stand the scrutiny of law and thus it is liable to be set aside. The product under consideration i.e. monitors of various models imported by the appellants would be classifiable under Customs Tariff Item/ CTH 8528 52 00 and are appropriately leviable to Integrated Goods and Services Tax at the rate of 18% in terms of entry at serial No. 384 or 383C of the Notification No. 01/2017-IT(Rate) dated 28.06.2017. The impugned order is set aside and the appeal is allowed in favour of the appellants. ISSUES:
RULINGS / HOLDINGS:
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