TMI Blog2023 (6) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... nbuilt input unit, output unit along with processing unit then it is obvious that the item is capable of performing multiple functions - For such an item similar to the subject goods, the issue is to ascertain essential function and terms of the heading read with Section/Chapter Notes for determination of classification of such goods. In light of the foregoing, 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 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, in an appeal filed by M/s Ingram Micro India Pvt. Ltd. [ 2022 (2) TMI 308 - CESTAT NEW DELHI] . Thus, 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 Customs Tariff Act, 1975. - CAAR/Del/10/2023 In Application No. VIII/CAAR/Del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... system pre-loaded with Android 11.0 Android Operating System (OS), which delivers incredible software functionality including a 4K-optimized user interface; apart from Android OS, this panel is capable of functioning on Microsoft Windows 10/11, Linux, Mac OS X, Android, Chrome OS; as per Webopedia, an All-in-One Computer System has been defined as An All In One (AIO) Computer system is a type of computer which has all the parts of a computer like CPU, memory (ram storage) motherboard, graphic card, all in one place, inside the monitor's body . The applicant has further stated that, the subject goods consists of all the parts of a computer like CPU, memory (ram+ storage), motherboard, graphic card, all in one place, inside the display's body; like a Tablet computer system, subject goods also typically come with a mobile operating system and touch screen display processing circuitry and has two classes of Operating Systems, i.e., Mobile Operating System like Android 9.0 (Oreo), and Desktop Operating Systems Microsoft Windows, like Apple Mac and Chrome OS; the subject good is an All In One (AIO) Computer System, and functions like a large size tablet computer; subject goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s opportunities, educational pursuits, and even at home leisure; in a nutshell, IFP display is a type of Interactive Whiteboard which is a large electronic display that has Interactive Flat Panel Display having a large-format touch screen display ideal for meeting rooms. It is further commented that, subject goods are not merely an ADP machine and in fact has many other additional in-built features with the main purpose to interact through display as per the intended use i.e training, conferences, educational purposes, teaching via e-leaming etc.; the subject goods are mainly display devices incorporating and working in conjunction with an ADP machine i.e inbuilt CPU; therefore, primary function of the goods is to display the given input data/images/pictures/videos etc.; IFP being primarily used as Display system cannot be considered as a simple input or output device and is to be identified with its primary function of display by applying Note 6 (E) of Chapter Notes of Chapter 84, rule 1 and rule 3 of General Rules for Interpretation of Import Tariff (GRI, in short); essentially, subject goods act as a display monitor, meaning that you can select to view documents, videos and even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant explained goods in question, which are proposed to be imported and on which advance ruling has been sought. Referring to Chapter Notes of Chapter 84, he explained as to how goods in question merit classification under heading 8471. In this regard, he also cited reference to ruling issued by CAAR, Mumbai, in the application filed by a different applicant but for similar item of import, wherein, the Authority ruled for classification of the item under 8471. While referring to the comments of the concerned Commissioner, advocate mentioned that they have filed their submissions on the comments and argued for difference in the products as described in the judgements quoted in comments of the concerned Commissioner vis-a-vis the item in question, for which advance ruling has been sought vide the Present application' The Additional Commissioner representing the department reiterated submissions made I their comments on the application for advance ruling and stated that essentialy the function of the goods in question is display thus heading 8528 is relevant for classification. As regards, ruling of CAAR, Mumbai on the similar item, he informed that the department is in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... monitors which are capable of receiving and displaying the signals when attached to any of the devices like ADPM, Video Camera or Recorder and these monitors do not have capability of functioning independently or through two-way communication; neither they are capable of processing any data on their own nor are they capable of storing any data; the goods, on the other hand, have an in-built CPU, 2GB RAM for executing program, 16 GB storage capacity and are also loaded with Android 7.0 operating software; thus, the goods can perform a plethora of functions beyond being used as a traditional whiteboard in the classrooms; the goods are not merely used for display of the information or presentation but are also capable of complex operations and can function independently on standalone basis; the goods are, therefore, much more than mere display devices and would not merit classification under CTH 8528 as monitors ; the size of the goods and capability of being operated by means of a remote control are also features not usually found in monitors, as per HSN Explanatory Notes to Chapter 85; when the classification of the goods is determined by application of Chapter Notes and GR11, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the applicant other than the applicant in the instant application. Thus, finding that the application is valid in terms of the provisions of the Customs Act and the CAAR Regulations, 2021, having gone through the submissions of the applicant, comments of the concerned Commissioner, having heard the applicant, and recognizing the importance of timely pronouncement of rulings, I proceed to examine the question on merits. 8. Since the question under the application for advance ruling relates to classification of goods proposed to be imported, guidance of the World Customs Organization, to which India is a signatory, would be useful. It is noted that the Harmonized System Committee (60th Session) of WCO has examined a similar product, i.e an electronic interactive whiteboard ( Smart Board ), size 78 inches, consisting of a touch-sensitive, dry-erase surface with multitouch functionality, which accepts touch input from a pen or a finger and features integrated speakers generally delivered complete with two pens, device driver software a user guide which can serve as a surface to display the screen of an ADP machine, projected by the video projector and it is able to accept or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a processing machine i.e., inbuilt CPU; therefore, the primary function of the goods is to display the given input data/images/pictures/videos etc. and ADP machines performing specific functions other than Data processing are required to be classified as per their respective functions; even though the functions of an ADP machines are inbuilt, the subject goods viz., Interactive Flat Panels being primarily used as Display System cannot be considered as a simple input or output device and is to be identified with its primary function of display by applying Note 6 (E) of Chapter 84 Note as mentioned above, (iii) since, the description mentioned in the application is Interactive Flat Panel , the main function of subject goods is interaction through display; essentially, it acts as a display monitor, meaning that you can select to view documents, videos and even web links on a larger scale. 10.2 On perusal of the comments of the concerned Commissionerate on the application for advance ruling, it is observed that the word, 'Display' in the description of item, 'Interactive Flat Panel Display; has caught their attention and same has been made basis to arrive at essen ..... 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