TMI Blog2023 (6) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... prolonged period of time like desktop monitors, while monitors designed for other uses have a high emission standard as they are to be viewed at a distance. While models VA 2732 MH - IN 1, VX3276-MHD-3 and VA 2432-MH-IN-1 have a built in speaker of 2 x 2 watts, the other models do not have built in speaker. The subject goods have physical control buttons on front panel in all the models and have various ergonomic features such as tilt, swivel, height adjusting mechanism, glare free surfaces and flicker free display. The subject goods can be regarded as being part of an automatic data processing system as it meets all of the conditions specified in Chapter notes 6(C) of Chapter 84. Further, the absence of built in USB driver, SD card external storage connectivity and touch screen capability ensures that the principal function of the subject goods is connecting to an ADPS. However as per paragraph 6(D) 6(E), monitors, not incorporating television reception apparatus when presented separately, cannot be classified under Chapter heading 8471 and have to be classified in the headings appropriate to their respective functions. Accordingly, by virtue of terms of the headings, relativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 16:9 so the picture is rectangular and HDMI has a higher resolution of 1920 X 1080 pixels as compared to the analog signals having 704 x 480 pixels and it receives signals digitally, thereby avoids spending time or processing power converting the signal from an analog format; that since HD-DVD players are no longer in vogue, HDMI is used with ADPS primarily. The applicant seeks to classify the subject goods under Chapter 85, specifically under sub-heading 8528 52 00 of Customs Tariff Act, 1975, attracting an eligibility benefit of exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended. The applicant has submitted detailed information on technical specifications and characteristics of Models proposed to be imported. The same is reiterated below: Sr. No Description of Technical Features Model VA 1903H-2 Model VA 2732-MH-1N-1 Model VA 2209-H Model VA 2215-H-IN-1 Model VA 2432-MHIN-1 Model VX 3276-MHD-3 Remarks 1. VGA Ports Yes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 33/2007-Cus. dated 10.09.2007, issued by Central Board of Excise and Customs, wherein the Board has issued guidelines distinguishing the technical features of computer monitors from other types of Television/video monitors. Further, they have bought to notice the absence of guidelines for technical features like HDMI port or Speaker, which are currently built-in the subject goods intended for import. In this regard they have opined that the absence could be on account of the fact that the said features came into existence at a later date and technology has greatly evolved since issue of the said Circular. The moot question as per the applicant is whether presence of HDMI Port and Sound Capabilities through speakers in the subject goods, eliminates its prime function of being principally designed to be used with ADPS, thus making eligibility benefit of exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended, inadmissible. In support of their claim, applicant has relied upon the case of Benq India Private Ltd. by the hon'ble CESTAT Delhi, wherein in the case of Projector, Hon'ble Tribunal held that mere presence of multiple ports d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the facts on record and extend the duty exemption benefit under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended. No one represented the jurisdictional Commissionerates of Customs in the hearing. 5. Subsequently the applicant submitted a rejoinder dated 02.02.2023, providing additional information, distinguishing monitors capable of accepting signal from CPU of an ADPM and providing Graphical presentation of the Data processed. The same is verbatim reproduced below: Sr. No Requirements Actual Goods 1. Usually display signals of Graphics Adaptors Viewsonic models have Graphic ports from Advanced Micro Devices, INC 2. Do not have channel selector or video tuner Videosonic models mentioned do not incorporate a channel selector or Video tuner 3. Monitor are Fitted with connector characteristic of data processing systems (EG RS-232C, DIN, D-SUB, VGA, DVI, HDMI or DP) Viewsonic listed model have both VGA and HDMI connectors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 72 00 and making them eligible for duty exemption benefit under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as monitors solely or principally designed for use in ADPS. 5. I have considered all the materials placed before me in respect of the subject goods for which an advance ruling has been sought. I have gone through the case presentation, written submissions, rejoinder dated 02.02.2023, reliance placed on the case of Benq India Pvt Ltd by CESTAT Delhi and AVECO Viscomm Pvt Ltd (CESTAT Hyderabad) in Appeal No. C/31037/2017, CAAR New Delhi ruling CAAR/DEL/SHARP/31/2021 dated 19.04.2022 and CBIC Circular No. 33/2007-Cus. dated 10.09.2007. The present case needs to be deliberated upon in light of legal framework governed by the Customs Tariff Act, 1975, specifically Chapter 84 85, its corresponding Chapter notes, supplementary notes and relevant HSN explanatory notes. In the absence of comments from jurisdictional authority on subject goods, I proceed to pronounce ruling on the issue, on basis of information available on record. The subject goods for which advance ruling has been sought, its technical specifications, characteristics, functions etc. have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 6.1 I find that the applicant has drawn attention to the contents of the CBIC Circular no. 33/2007 dated 10.09.2007, wherein inter alia, it has been categorically stated that due to changes in Harmonized System of Nomenclature (HS) 2007 all types of monitors and projectors which are solely or principally used with an ADP machine are covered under the sub-headings 8528 41 (Cathode Ray Tube Monitors), 8528 51 (Other types) and 8528 61 (Projectors) [erstwhile tariff heading ] and are extended with Customs duty exemption benefit vide Sr. No. 17 of notification No. 24/2005-Customs dated 1-3-2005. Further the CBIC Circular provides a comparative chart on technical features, distinguishing computer monitors from other types of Television/Video monitors that could be used as guidance for assessment and examination of the said goods. As illustrated in the chart, some of the technical features that distinguish Computer monitors are that they do not incorporate a TV Tuner Card instead have DVI and/or mini D-Stub connectors to connect to the CPU; that they have few ports like VGA, DVI, USB to receive signals from CPU or storage devices; that they receive RGB signals and do not possess se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated that the subject goods are classifiable under CTH 8528 as monitors capable of directly connecting to and designed for use with an Automatic Data Processing System (hereafter known as ADPS) of heading 8471. Accordingly, I proceed to verify the eligibility of impugned goods for classification under sub heading 8528 52 00 as requested by the applicant. 6.3 Chapter heading 8528 stipulates that, Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus. This heading is further subdivided into four 1-dash subheading. These subheading covers, inter alia, monitors, that are sub-categorized as cathode-ray tube monitors and, other monitors . The sub heading, other monitors under 8528 52 00 states, Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 . Further, in terms of HSN Explanatory Notes to heading 8528, This group includes monitors which are capable of accepting, a signal from the central processing unit of an automatic data processing m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecified or included . As per Chapter notes 6(C) of Chapter 84, read with para (D) and (E ), a unit is to be regarded as being part of an automatic data processing system, if it meets all of the following conditions: (i) it is of a kind solely or principally used in an automatic data processing system; (ii) It is connectable to the central processing unit either directly or through one or more other units; and (iii) It is able to accept or deliver data in a form (codes or signals) which can be used by the system. I find that the subject goods do not have a built in USB driver or SD card external storage connectivity, thus they cannot be used without an ADPS, instead it has VGA port that enables receiving signal from a CPU or storage device and has a HDMI port which is a proprietary audio/video interface for transmitting data digitally. Consequently, it is seen that the subject goods meet the criteria as laid down in the relevant chapter note, reproduced above, so as to be regarded as being part of an automatic data processing system falling under CTH 8471. It is seen that Chapter note 6(C) is to be read with paragraph (D) (E). Paragraph 6(D) inter alia specifies, that headin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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