TMI Blog2022 (6) TMI 1403X X X X Extracts X X X X X X X X Extracts X X X X ..... ual input by means of keyboards or the input may be furnished directly by certain instruments (e.g., measuring instruments) - Digital data processing machines may comprise in the same housing, the central processing unit, an input unit (e.g., a keyboard or a scanner) and an output unit (e.g., a visual display unit), or may consist of a number of interconnected separate units. In the latter case, the units form a system when it comprises at least the central processing unit, an input unit and an output unit. Two of these units (input and output units, for example) may be combined in one single unit. Two or more of these systems may be interconnected, thus constituting, e.g., a local area network (LAN). These systems may include remote input or output units in the form of data terminals. Such systems may also include peripheral units, apart from the input or output units, designed to increase the capacity of the system, for instance, by expanding one or more of the functions of the central unit. Open-source information as well as the submissions of the applicant portrays the subject item as an A10 which is a fully functional ADP machine that operates without restrictions. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following jurisdictional Principal Commissioners/Commissioners of Customs were invited. ( i). Commissioner of Customs, Sea Port, Chennai 600 001 (ii). Commissioner of Customs, Air Port, Chennai 600 027 (iii). Commissioner of Customs, Nhava Sheva, Maharashtra 400 707 (iv). Commissioner of Customs, Air Port, Mumbai 400 059 (v). Commissioner of Customs, Air Port, Delhi 100 037 (vi). Commissioner of Customs, Sea Port, Kolkata. 700 001 (vii). Commissioner of Customs, Air Port, Kolkata 700 001. 3. The applicant has submitted a detailed write up describing the functions and utilities of the subject goods proposed to be imported by them. It is submitted that the subject goods is an all-in-one (AIO) computer systems, functioning like a large size tablet computer, having central processing unit, mother board, graphic card, in-built memory (RAM+Storage), touch screen as virtual key board as an input device and video display unit as an output device. The subject goods are not mere display units, rather they are computer systems with extensive connectivity which offer versatile plug and play compatibility with Windows, Mac and Chrome OS. Facilitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s objection is that the goods, viz. interactive intelligent panel does not have the functionality of an automatic data processing machine as defined in chapter note 5(a) of chapter 84 of the customs tariff. It is further contented that in terms of note 5(e) to chapter 84 of the customs tariff, instruments or apparatus incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in a residual heading. Accordingly, it has been submitted by the department that the goods in question are mainly display devices incorporating and working in conjunction with an ADP machine, and therefore, the primary function of the goods is to display the given input data/images/pictures/videos etc. In this regard, it is submitted by the applicant that chapter note 5(A) and the HSN explanatory notes to CTH 84.71 provide what should constitute an ADP machine. According to the aforesaid chapter note on ADP machine would be a machine which is capable of storing a processing program; is freely programmable; performs arithmetical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and this cannot be construed to be its function, much less its principal function. The department, therefore, committed an error in contending that the large size of display would mean that the IFPs are meant for display purpose to a large gathering and, therefore, in terms of Note 5(E) of Chapter Note 84, they would merit classification as per the specific use. (vii). In terms of chapter notes contained in Chapter 85 and the HSN Explanatory Notes to CTH 8528, it is more than apparent that CTH 8528 would cover monitors which are capable of receiving and displaying the signals when attached to any of the devices like ADP machines, video camera or recorder. Such monitors do not have the capability of functioning independently or through two-way communication. They are also not capable of processing any data on their own, nor are they capable of storing any data. (viii). The devices under consideration, on the other hand, are much more than meredisplay devices and, therefore, cannot be classified under CTH 8528 as monitors. The HSN Explanatory Notes to CTH 8528 also mention that the viewable image sizes of the monitors do not generally exceed 30 inches and that they usual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Central Processing Unit, Mother Board, Graphic Card, Memory (RAM + Storage), graphic processing unit, touch screen as virtual key board as an input device and video display unit as an output device, all in one place, within the display's body. The subject item typically come loaded like a tablet computer system, with a mobile operating system and touch screen display processing circuitry, and can be used with either of the operating systems, i.e., mobile operating system. like Android 9.0 (Oreo) and/or desktop operating systems like Microsoft Windows, Apple Mac and Chrome OS. It has been suggested that the subject item merits classification under sub heading 84714190 as it satisfies all the requirements as mandated under Note 5 (A) to Chapter 84 of Customs Tariff Act, 1975 i.e., the machine is capable of: - ( i) storing the processing program necessary for the execution of the program; (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 program which requires them to modify their execution, by logical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, by logical decision during the processing run. Thus, machines which operate only on fixed programs, i.e., programs which cannot be modified by the user, are excluded even though the user may be able to choose between a number of such fixed programs. The digital data processing machines have storage capability and also stored programs which can be changed from job to job. Digital machines process data in coded form. A code consists of a finite set of characters (binary code, standard six-bit ISO code, etc.). The data input is usually automatic, by the use of data media such as magnetic tapes, or by direct reading of original documents, etc. There may also be arrangements for manual input by means of keyboards or the input may be furnished directly by certain instruments (e.g., measuring instruments). The input data are converted by the input units into signals which can be used by the machine, and stored in the storage units. Part of the data and program or programs may be temporarily stored in auxiliary storage units such as those using magnetic discs, magnetic tapes. etc. But these machines must have a main storage capability which is directly accessible for the executi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions of the applicant portrays the subject item as an A10 which is a fully functional ADP machine that operates without restrictions. The AIO is equipped with hardware and software that allow it to perform, without artificial constraints, general computing tasks, where users are free to add or remove applications of their choosing. In a similar matter, the principal bench of CESTAT, New Delhi, in FINAL ORDER NO. 50076-50077/2022 in CUSTOMS APPEAL NO. 50708 OF 2021 with CUSTOMS APPEAL NO. 50709 OF 2021 appeal filed by M/s. Ingram Micro India have held that goods would merit classification under CTI 8471 41 90 as claimed by the appellant and not under CTI 8528 52 00 as claimed by the department. The issue in both the appeals is regarding classification of the goods namely (i) (ViewBoard) ViewSonic IFP6550-2/65 Interactive Display System; and (ii) (ViewBoard)-ViewSonicIFP7550-2/75 Interactive Display System. The appellant claims that the classification would be under Customs Tariff Item 3 8471 41 90, though, earlier at the time of self-assessment, the appellant had claimed it to be under CTI 8471 90 00. The Department claims that it should be under CTI 8528 52 00. The De ..... X X X X Extracts X X X X X X X X Extracts X X X X
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