2019 (4) TMI 1094 - AT - Customs

Classification of imported goods - HP Dream Screen All in One 400 PC - classified under CTH 84713010 or under CTH 84715000 - HELD THAT - The manufacturer has himself stated that the product is having a touch screen and virtual on screen keyboard is as good as the physical keyboard, and could be used for entry of data. Hence there is no merits in the submissions of the appellant to the effect that there is no keyboard imported/ associated with the imported goods - The terms of heading 847130 do not require the presence of physical keyboard but only require a keyboard as input device. Even the presence of onscreen keyboard is enough to fulfill the requirements of said heading. Whether the item imported is portable or not? - Appellants have contended that the item imported is not portable and hence the same cannot be classified under heading 847130 - HELD THAT - It is observed that in technical literature portable computers are not limited to laptops/ notebooks but this term is used for all computers which can be easily relocated from one place to another place - the imported goods are definitely in category of portable computers. There is no support to the contentions raised by the appellant from the technical literature put forth by them. Nowhere in the technical literature relied upon by the appellant it is stated that keyboard has to be physical only. Since the imported goods satisfy all the terms and conditions for classification under heading 847130, there is no fault/error in the classification as determined by the adjudicating authority and the appellate authority - appeal dismissed - decided against appellant.

Summary

Issues Involved:
1. Classification of imported goods under the correct Customs Tariff Heading (CTH).
2. Determination of whether the imported goods qualify as "portable" and if they include a "keyboard."

Detailed Analysis:

1. Classification of Imported Goods:
The primary issue revolves around the classification of the imported "HP Dream Screen All in One 400 PC." The appellant classified the goods under CTH 84715000, while the revenue classified them under CTH 84713010. The adjudicating authority and Commissioner (Appeals) upheld the revenue's classification.

2. Determination of Portability and Keyboard Inclusion:
The appellant argued that the product does not contain an in-built physical keyboard and is not portable, thus should not be classified under CTH 84713010. The revenue contended that the product has a virtual keyboard and is portable, meeting the criteria for classification under CTH 84713010.

Appellant's Arguments:
- The product lacks an in-built physical keyboard, which is essential for classification under CTH 84713010.
- The product is not portable as it lacks a built-in rechargeable battery and is not foldable.
- The correct classification should be under CTH 84715000, as it includes a secondary storage unit.

Revenue's Arguments:
- The product has a virtual keyboard, which fulfills the requirement of a keyboard under CTH 84713010.
- The product is portable as it can be easily relocated, despite not having a built-in rechargeable battery.
- The product meets all criteria for classification under CTH 84713010, including being a portable automatic data processing machine with a central processing unit, a keyboard (virtual), and a display unit.

Tribunal's Findings:
- The tribunal examined the technical literature and product catalog, confirming that the product has a virtual keyboard and is portable.
- The tribunal noted that the terms of heading 847130 do not require a physical keyboard but only a keyboard as an input device, which can be virtual.
- The tribunal also clarified that the definition of "portable" does not necessitate a built-in rechargeable battery or foldability. The product's weight (2.44 kg) and its ability to be relocated qualify it as portable.

Conclusion:
The tribunal upheld the classification of the imported goods under CTH 84713010, agreeing with the revenue's assessment. The appeal was dismissed, and the impugned order was upheld.

Final Judgment:
The imported goods were correctly classified under CTH 84713010, meeting all necessary criteria, including portability and the presence of a virtual keyboard. The appeal was dismissed, and the order of the lower authorities was affirmed.