2025 (4) TMI 830 - AT - Customs

Classification of imported goods - ATM monitors - to be classified under CTH 8473 as parts of ATMs or under CTH 8528 as other monitors? - HELD THAT - Tariff Headings ATM is clearly classifiable under CTH 8472 9030 CTH 8473 4090 as others covered under parts and accessories of the machines falling under CTH 8472. In other words the monitor which is a part of the ATM (not disputed) is clearly classifiable under 8473 4090 as parts of ATM. The claim of the revenue to classify them under CTH 8528 5900 as others under the residual entry only for the reason that the word monitor is specifically mentioned under this Chapter Heading cannot be accepted in view of the fact that parts of ATM are clearly classifiable under CTH 8473. Since these parts meant for ATM are not excluded under Note 1 above the criteria for classification would be Clause 2(b) where specifically parts which are suitable or principally used with a particular kind of machine or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind. Since there is no dispute that the product monitors are ATM monitors which have to be necessarily used as parts of monitors they are rightly classified under CTH 8473 as parts of ATM CTH 8472. Conclusion - The imported ATM monitors are to be classified under CTH 8473 aligning with the classification of ATMs under CTH 8472. The impugned order is set aside - appeal allowed.

Summary

ISSUES PRESENTED and CONSIDERED

The core legal issue considered in this judgment is the correct classification of imported ATM monitors under the Customs Tariff Heading (CTH). Specifically, the question is whether these monitors should be classified under CTH 8473 as parts of ATMs, as argued by the appellant, or under CTH 8528 as other monitors, as contended by the revenue.

ISSUE-WISE DETAILED ANALYSIS

Relevant Legal Framework and Precedents

The legal framework involves the interpretation of the Customs Tariff Headings 8473 and 8528. CTH 8473 pertains to parts and accessories of machines falling under CTH 8472, which includes ATMs. CTH 8528 covers monitors and projectors not incorporating television reception apparatus. The appellant relies on precedents from higher courts, including decisions in Commissioner of Central Excise Vs. Videocon Industries Ltd., CCE Vs. Samsung India Electronics Pvt. Ltd., and Secure Meters Ltd. Vs. Commissioner of Customs, which have previously addressed similar classification issues.

Court's Interpretation and Reasoning

The Tribunal analyzed the relevant tariff headings and the specific nature of the imported goods. It noted that ATMs are classified under CTH 8472, and parts of such machines fall under CTH 8473. The Tribunal emphasized that the monitors in question are specifically designed for use in ATMs, making them integral parts of the machines classified under CTH 8472. The Tribunal rejected the revenue's argument to classify the monitors under CTH 8528 based solely on the term "monitor" appearing in that heading, as it would disregard the specific use and integration of the monitors in ATMs.

Key Evidence and Findings

The Tribunal found that the monitors were imported specifically for use in ATMs, and there was no dispute regarding their function as parts of these machines. The evidence presented confirmed that the monitors are not standalone units but are integral components of ATMs.

Application of Law to Facts

Applying the legal framework, the Tribunal concluded that the monitors should be classified under CTH 8473 as parts of ATMs. This classification aligns with the principle that parts suitable for use solely or principally with a particular kind of machine should be classified with the machines of that kind, as outlined in Section XVI of the tariff schedule.

Treatment of Competing Arguments

The Tribunal considered the revenue's reliance on the decision in Diebold India Pvt. Ltd. Vs. Commissioner of Customs, which argued for classification under CTH 8528. However, it distinguished this case by emphasizing the specific use of the monitors as parts of ATMs and the precedent set by higher courts supporting classification under CTH 8473.

Conclusions

The Tribunal concluded that the monitors are correctly classifiable under CTH 8473 as parts of ATMs, and the revenue's attempt to classify them under CTH 8528 was not justified. Consequently, the appeal was allowed, and the impugned order was set aside.

SIGNIFICANT HOLDINGS

The Tribunal established the principle that parts specifically designed and used for a particular machine should be classified with that machine. It reinforced the interpretation of Section XVI, which guides the classification of parts based on their use and integration with specific machines.

The Tribunal's final determination was that the imported ATM monitors are to be classified under CTH 8473, aligning with the classification of ATMs under CTH 8472. This decision underscores the importance of considering the specific use and function of components in determining their tariff classification.