2003 (3) TMI 476 - AT - Central Excise

Summary

Issues: Classification of goods under Heading 85.28 as video monitors or under Heading 84.73 as computer monitors.

Analysis:
1. The lower authorities classified the goods as video monitors under Heading 85.28, while the appellants claimed classification under Heading 84.73 as computer monitors. The Deputy Commissioner relied on the absence of Computer Colour Monitor in Heading 84.73 and specifically mentioned "Video Monitor" in Heading 85.28 for classification.

2. The Commissioner (Appeals) upheld the Deputy Commissioner's order, stating that the product literature showed the monitor could be used for various purposes, including as a television receiver. The Adjudicating Authority classified the product as a video monitor under SH No. 8528.90, emphasizing its versatility.

3. The appellants referred to the Explanatory Notes to the HSN under Heading No. 84.71, highlighting the differences between display units of automatic data processing machines and video monitors. They argued that their product, designed as a computer monitor, should be classified under Heading 8471 as an output unit of a computer.

4. The appellants distinguished computer monitors from video monitors based on various technical aspects such as signal acceptance, electromagnetic field emissions, display pitch size, convergence standards, video bandwidth, and horizontal scanning frequency. They emphasized that their product aligned with the characteristics of computer monitors, as per the Explanatory Notes to the HSN.

5. Citing case laws, the appellants argued that the Explanatory Notes to the HSN carry significant weight in classifying goods under the Central Excise and Customs Tariff, supporting their contention that the product should be classified as a computer monitor under Heading 8471.

6. After considering the submissions and case records, it was concluded that the product in question, designed as a computer monitor, should be classified under Heading 8471 as an output unit of a computer. The distinction between computer monitors and video monitors, as clarified in the Explanatory Note to the HSN, supported this classification, overriding the observations of the lower authorities.

7. The impugned order classifying the goods under Heading 85.28 as video monitors was set aside, directing the classification under Heading 8471. The appeal was allowed in favor of the appellants, emphasizing the technical and functional differences between computer monitors and video monitors for accurate classification.

This detailed analysis highlights the key arguments, technical distinctions, legal interpretations, and final decision regarding the classification of goods as computer monitors under Heading 8471, based on the Explanatory Notes to the HSN and relevant case laws.