TMI Blog2024 (3) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... uirement 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 can perform 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. 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. 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 - The HS Committee of WCO decided the classification of this product under sub-heading 8471.60, adopting the classification rationale under General Rules for Interpretation vide Rule 1 read with Note 5(C) to Chapter 84 and Rule 6 of GRI. It is noted that a number of rulings and judgments have been quoted by the concerned Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised the question for issue of a ruling on classification of the subject goods under CTH 8471 41 90. 3.2 The applicant has also stated that, the subject goods are 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 OS. The applicant has further stated that, facilities like built-in Marketplace, cloud drive, and file manager provide easy access to popular apps and cloud storage; the screen recording capabilities of the subject goods enable easy saving of meetings, lessons or motes for later viewing or sharing. the Panel has an Embedded Android system pre-loaded with Android 11.0 Android Operating System (OS), which delivers incredible software functionality, including a 4K. UHD user interface; apart from Android OS, this panel is capable of functioning on Micr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter involving the classification of flat panel display, reported in ruling, 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 an identical item, the Hon ble Authority, Mumbai vide Ruling No. CAAR/Mum/ARC/04/2022, dated 2-2-2022, CAAR/Mum/ARC/15/2022, dated 3-6-2022 [2023 (383) E.L.T. 343 (A.A.R. - Cus. - Mum.) = (2023) 2 Centax 273 (A.A.R. - Cus. - Mum.)] and CAAR/Mum/ARC/03/2023, dated 31-1-2023 [(2023) 6 Centax 21 (A.A.R. - Cus. - Mum.)] has held that the product, Creative Touch Interactive Flat Panel (IFP) merits classification under sub-heading 8471 41 90 of the First Schedule to the Customs Tariff Act. Lastly, the applicant has prayed that the subject goods be classified under sub-heading 8471 41 90. 4. Comments in the matter have been received from the concerned Commissioner of Customs, Chennai, wherein, while referring to Heading 8471, Chapter Note 6 to Chapter 84, it has been inter alia stated that, Interactive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d projectors not incorporating television reception apparatus when presented separately even if they meet all the conditions mentioned in Note 6(C) of the said Note; also. Note 6(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 subject goods are not merely an ADPM and in fact it has many other additional inbuilt features with the main purpose to interact through display as per the intended use i.e. training, conferences, educational purposes, teaching via e-learning etc.; the goods are mainly Display deuces incorporating and working in conjunction with an automatic data processing machine i.e. inbuilt CPU; therefore, the primary function of the goods is to display the given input data/images/pictures/videos etc., 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 good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in the case of Deena Jee Sansthan v. Commissioner of Central Excise, Meerut - 2019 (365) E.L.T. 353 (S.C.) = [2019] 101 taxmann.com 407 (SC)/71 GST 601 (SC) wherein the Supreme Court held that the classification of product should be by applying common parlance test that the said product i.e. Shampoo is used as cosmetics only and not as ayurvedic medicament even though the product has all the ingredients mentioned in books on ayurveda listed in Drugs and Cosmetics Act: 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 8528 59 00 which deals with other monitors; in the case of Commissioner of Customs (Import General), New Delhi v. Integral Computer Ltd. 2016 (337) E.L.T. 580 (Tri. - Del.), the Hon ble Tribunal has held that, Interactive Electronic White Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods are meant for display purpose to a large gathering and. therefore, in terms of Chapter Note 5(E) of Chapter 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 8171 by the Principal Bench of/the Hon ble CESTAT in the case of Ingram Micro India Pvt. Ltd. v. Principal Commissioner of Customs (Import) ICD, Tughlakabad [Final Order No. 50076-50077/2022, dated 2-2-2022] [(2023) 2 Centax 62 (Tri. - Del.)] 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 Re : Next Education India Pvt. Ltd. report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that it creates an interactive environment for teaching and demonstration, 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 he 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 5-series Interactive Flat Panel (IFP) (Model- 5652RK+, 5752RK+ 5862RK+) is classifiable under CTH 8471 41 90. 7. Finding that the Customs Authority for Advance Rulings, Mumbai has already issued rulings on the similar items in respect of the applicants other than the applicant in the instant application Moreover, finding that the application is valid in terms of the provisions of the Customs Act, 1962 and the CAAR Regulations, 2021, having gone through the submissions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el 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 Note (C) of the said Note, further. Note (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, falling that, in residual headings, subject goods are not merely an ADPM and in fact it has many other additional inbuilt features with the main purpose to interact through display as per the intended use i.e., training, conferences, educational purposes, teaching via e-learning etc., the goods are mainly Display devices incorporating and working in conjunction with an automatic data processing machine i.e., in-built 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 78 inches, consisting of a touch-sensitive, dry-erase surface with multi-touch 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 deliver data in a form which can be used by the ADP machine. The HS Committee of WCO decided the classification of this product under sub-heading 8471.60, adopting the classification rationale under General Rules for Interpretation vide Rule 1 read with Note 5(C) to Chapter 84 and Rule 6 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 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 rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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