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TMI Blog2023 (6) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... s Interactive Flat Panel (IFP) (Model- 3652RK, 3752RK & 3862RK)" (subject goods, in short). 3.1 The applicant has stated in the application that, the subject goods are an All-in-One (AIO) computer system which function like a large size tablet computer and has an inbuilt mother board, dual core A52 Micro Processor (CPU), Quad-core A55, graphics card, 4GB RAM, and 32 GB ROM, an embedded android system pre-loaded with Android 11.0 Android Operating System (OS); the subject goods are classifiable under Sub-heading 84714190. Accordingly, the applicant raised the question for issue of a ruling on classification of the subject goods under CTH 84714190. 3.2 The applicant has also stated that, the subject good is an All-in-One (AIO) Computer System, which functions like a large size tablet computer and has an integrated system with central processing unit, mother board, graphic card, 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 offers versatile plug and play compatibility with Windows, Mac and Chrome O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta Processing (ADP) machine. 3.3 Further, the applicant has stated that, in a similar matter involving classification of flat panel display, reported in NY N2800009 dated 31.10.2016, the National Commodity Specialist Division, United States has held that the flat panel display, which is freely programmable and houses a CPU, and an input unit and/or an output unit shall be classified under 8471.41.0150 of the Harmonized Tariff Schedule of the United States; for Creative Touch 5-Series Interactive Flat Panel (IFP), the Hon'ble Authority, vide Ruling No. CAAR/Mum/ARC/15/2022 dated 03.06.2022 and Ruling No. CAAR/Mum/ARC/04/2022 dated 02.02.2022 had held that the product is classifiable under Sub-heading 84714190; said rulings are applicable to the present case as Optomo Creative touch 3 series IFP is similar to the product that was under consideration before the Hon'ble Authority in the above-mentioned Rulings. 4. Comments in the matter have been received from the concerned Commissioner of Customs, Chennai, wherein, it has been inter-alia stated that, an Interactive Flat-Panel Display (IFPD) is a large-format touchscreen display ideal for meeting rooms and collaborative space ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise, Meerut-2019 (365) ELT 353 (SC) which held that the classification of product should be by applying common parlance test that the said product; in view of the foregoing, subject goods cannot be considered as an Automatic Data Processing machine under CTH 8471; even Cellular Android Phones do incorporate all the functions of an ADP Machine and works on Android OS, yet the same is classified under cellular phones as the primary function is communication; applying the same analogy the principle function of the item under import is to interact through display and hence the impugned goods are classifiable under sub-heading 85285900 which deals with other monitors. Lastly, the comments of the concerned Commissioner referred to case of Commissioner of Customs (Import & General), New Delhi Vs Integral Computer Ltd. 2016 (337) E.L.T. 580 (Tri-Del) and stated that in this case, the Hon'ble Tribunal has held that, "Interactive Electronic White Board" is a teaching device mainly used for class room teaching or in conferences and meetings and work and get the display function by combined action with a computer and projector cannot be considered as a simple input or output device ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s incorrect in contending that the large size of display would mean that the goods are meant for display purpose to a large gathering and, therefore, in terms of Note 5(E) of Chapter Note 84, the goods would merit classification as per the specific use; in terms of tariff items 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 Automatic Data Processing Machine, Video Camera or Recorder; such monitors do not have the capability of functioning independently or through two way communication; neither they are capable of processing any data on their own nor they are capable of storing any data; identical goods have also been classified under CTH 8471 by the Principal Bench of the Hon'ble CESTAT in the case of Ingram Micro India Pvt. Ltd. Vs. Principal Commissioner of Customs (Import), ICD, Tughlakabad [Final Order No. 50076-50077/2022 dated 02.02.2022] and also by the US Customs Cross Ruling and WCO Classification Ruling; for an identical product, the Authority for Advance Ruling, Telangana in the case of In R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if connected with PC and projector under the support of dedicated software; the electronic pen supplied with the white board can operate the PC instead of mouse...therefore, the product in question was required to be connected to a PC or projector, whereas, the product under consideration in the present case has an in-built CPU and is not required to be connected to a PC or projector to be used; it has an independent functionality; therefore, for the reasons mentioned in the application for advance ruling and for the reasons mentioned above, the applicant has prayed that the product under consideration, namely, "Optoma Creative Touch 3-series Interactive Flat Panel (IFP) (Model - 3651RK, 3752RK 3862RK)" is classifiable under CTH 8471 4190. 7. Finding that the Customs Authority for Advance Rulings, Mumbai has already issued rulings on the similar item and on being informed that the Department is in the process of filing SLP, I draw attention to the second proviso under Sub-section (2) of Section 28-1 of the Customs Act, 1962 which bars the Authority to allow application where the question raised in the application, is already pending in applicant's case before any officer of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comments of the concerned Commissioner of Customs, Chennai, on the application for advance ruling, it is observed that classification under heading 8528 instead of claimed classification under heading 8471, has been preferred mainly for the reasons that, (i) Interactive Flat-Panel Display (IFPD) is a large-format touchscreen display ideal for meeting rooms and collaborative spaces; in a nutshell, an IFPD-short for Interactive Flat Panel Display-is a type of interactive whiteboard (IWB); as per Note 6(D) to Chapter 84, Heading 8471 does not cover the monitors and projectors not incorporating television reception apparatus when presented separately even if they meet all the conditions mentioned in Para(C) of the said Note. Further, para (E) states that machines, 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 residual headings, (ii) subject goods are not merely an ADPM and in fact it has many other additional inbuilt features with the main purpose to interact th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Rule 6 of General Rules for Interpretation of Import Tariff (GRI) without inviting reference to Rule 3 of GRI.
11. I also note that a number of rulings and judgements have been quoted by the concerned Commissioner to justify classification under heading 8528. However, it is felt that judgement of CESTAT, New Delhi in the case of M/s Ingram Micro India Private Limited is the most appropriate, giving detailed explanation for classification of goods similar to the subject goods under heading 8471. It is also noted that 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 84714190, while referring to the Final Order of Hon'ble CESTAT, New Delhi in an appeal filed by M/s Ingram Micro India Pvt. Ltd.
12. Keeping in view the foregoing, it is evident that the proposed items of import namely, "Optoma Creative Touch 3-series Interactive Flat Panel (IFP) (Model- 3652RK, 3752RK & 3862RK)" merit classification under Sub-heading 84714190 of the First Schedule to e Customs Tariff Act, 1975.
13. I rule accordingly. X X X X Extracts X X X X X X X X Extracts X X X X
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