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TMI Blog2024 (1) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... he manufacture and trade of laptops/personal computers in the Indian market and now proposing to import the following four models of Interactive Large Format Displays from the Supplier namely, Lenovo PC Hong Kong and other Lenovo group entities. Sl. No. Product Name 1 ThinkVision Interactive Large Format Display T86 2 ThinkVision Interactive Large Format Display T75 3 ThinkVision Interactive Large Format Display T65 (with camera) 4 ThinkVision Interactive Large Format Display T65 (without camera) The applicant further submitted that the Interactive LFDs come with display sizes of 86-inch, 75-inch and 65-inch. All the models of Interactive LFDs feature a wide colour gamut for vivid colour accuracy and 400 cd/m2 brightness and come with a 4K resolution. The goods have an in-built CPU (Quad Core ARM Cortex A.73), a 4GB RAM and Android 9.0 Operating System. In addition, they also have an internal storage capacity of 64GB. They also have HDMI/DP or USB C type slots which permit multiple devices to be connected with these Interactive LFDs. In addition, they are also equipped with an additional port to support a stable, secure internet connection. A user can also load and execu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of the term Automatic Data Processing Machine as provided under Note 6(A), reliance cannot be placed on the common parlance understanding of the term Large Format Display to classify the subject goods as "Monitors" under CTH 8528. In light of the aforementioned submissions, the Applicant has sought to enter the following question for Advance Ruling - "Whether Interactive Large Format Displays being imported by the Applicant are classifiable under the Tariff Item 8471 41 90 of the Customs Tariff of India? 4. Comments dated 23-6-2023 have been received from the concerned Commissioner of Customs, Chennai on classification of subject goods i.e. 'Interactive Large Format Display', wherein, while referring to Heading 8471, and Chapter Note 6 to Chapter 84, it has been inter alia stated in said comments that :- The Android is a fixed Operating System (OS) and it cannot be re-programmed by the user of the device. Only application which are supported by Android OS can be used/run by the user. The user can choose any application available on Android App Store. Application and Program are two different things. Program, as name suggest, are simply set of instructions that are d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various names in the industry i.e., Interactive Whiteboard/Smartboard, Interactive Flat Panel Display, Interactive Intelligent Panels etc. The Interactive Display Systems can be used to present documents, information and videos to different groups, educational purposes i.e., e-learning for example to a group of students in a classroom or during a meeting in a business environment 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. The primary function of the goods is to display the given input data/images/pictures/videos etc. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gral Computer Ltd. - 2016 (337) E.L.T. 580 (Tri. - Del.), dated 7-4-2016 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 is to be identified with its primary function of display and has classified the goods under sub-heading 8528 51 00 i.e., other monitors (now CTH 8528 59 00)". 4.3 The concerned Commissioner of Customs, Chennai is of the view that the impugned goods are classifiable under sub-heading 8528 59 00 which deals with other monitors. 5. Personal hearing in the matter was held on 18-8-2023 through virtual mode wherein the authorized representative of the applicant while explaining the goods in question referred to earlier ruling issued by CAAR, New Delhi and Mumbai, and other judgments, in support of classification claimed by them. He also referred to Chapter Note 6(A) of Chapter 84 and mentioned that all conditions of said note have been satisfied by the goods in question which they intend to import. He also mentioned that though the applicant has imported the samples of the goods in question, commercial import of the same is yet to start. He re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p;storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme; (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 programme which requires them to modify their execution, by logical decision during the processing run. 9. I Find that the concerned Commissioner of Customs, Chennai has preferred classification of subject goods i.e. Interactive Large Format Display under Heading 8528 instead of classification claimed by the applicant i.e. 8471 for the reasons that, (i) the goods under import are not freely programmable, only application which is designed for end user to perform specific task and runs on Operating System/Software can be installed by the user, (ii) as per Explanatory Notes to Chapter 84, the 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, (iii) these goods cannot execute the logical function ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t goods and on closer examination, the capabilities of the subject goods meet the requirement under Chapter Note 6(A) of Chapter 84 for a machine to mean as 'automatic data processing machine'. Moreover, once an item has inbuilt 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. 11. I also note that a number of rulings and judgments have been quoted by the concerned Commissioner to justify classification under Heading 8528. However, it is felt that judgment of CESTAT, New Delhi in the case of M/s. Ingram Micro India Private Limited [(2023) 2 Centax 62 (Tri. - Del.)] is the most appropriate, giving detailed explanation for classification of goods similar to the subject goods und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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