2022 (12) TMI 951 - AAR - GST

Classification of goods - Walltop Computer roombr - classifiable under tariff heading 8471 41 90 or not - HELD THAT - The product roombr , in the instant case is a machine capable of performing all the functions envisaged under Note 5(A) to Chapter 84, simultaneously. It has 16GB RAM internal storage of 1 TB and hence is capable of storing the programs / data for execution of the programs; it has Intel 10th/11th Generation i5/i7 processor mother board and hence can be freely programmed in accordance with the requirements of the user; can also perform arithmetical computations specified by the user and can execute a processing program take logical decisions during the running of the said program. Therefore the impugned product squarely gets covered under category of automatic data processing machines. In the instant case the impugned product roombr comprises a central processing unit, a Bluetooth keyboard and IR pen to provide interactivity support as an input unit and a projected interactive display as an output unit. Therefore, even on this aspect also the impugned product squarely gets covered under the category of automatic data processing machines under the tariff heading 8471 41. The heading 8471 41 has three sub headings covering Micro Computer, Large or main frame computer and other. In the instant case the impugned product is neither a micro-computer nor a large or main frame computer and thus it gets covered under others. Therefore the impugned product is classifiable under tariff heading 8471 41 90.

Issues Involved:
1. Classification of the product "Walltop Computer" (Roombr).

Issue-wise Detailed Analysis:

1. Classification of the Product "Walltop Computer" (Roombr):

Admissibility of the Application:
The applicant sought an advance ruling on the classification of their product "Roombr," a walltop computer. This falls under the category of "classification of any goods or services or both," making it admissible under Section 97(2)(a) of the CGST Act 2017.

Applicant's Interpretation of Law:
The applicant contended that their product, based on its features and specifications, should be classified under Automated Data Processing Machines, falling under tariff heading 8471 41 90. They provided detailed technical specifications to support their claim, including a central processing unit, memory, storage, various user interfaces, and an integrated projection system.

Findings and Discussion:
The authority examined the classification of the product in light of the provisions of the CGST Act, 2017, and the KGST Act, 2017, which are in pari materia. They considered the submissions made by the applicant, including the technical details and the arguments presented during the hearing.

Examination of Classification:
The authority referred to Explanations (iii) and (iv) appended to Notification No. 01/2017-Central Tax (Rate), dated 28.06.2017, which guide the determination of product classification. They also referred to the Section Notes and Chapter Notes of the Customs Tariff Act, 1975, and the Harmonised Commodity Description and Coding System Explanatory Notes of the World Customs Organisation (WCO).

Analysis under Section XVI and Chapter 84:
Section XVI covers machinery and mechanical appliances, including automatic data processing machines under tariff heading 8471. The product "Roombr" was examined under this heading to determine if it qualifies as an automatic data processing machine.

Definition and Criteria of Automatic Data Processing Machines:
According to Note 5(A) to Chapter 84, an automatic data processing machine must be capable of:
(i) Storing the processing program and data necessary for execution,
(ii) Being freely programmed by the user,
(iii) Performing arithmetical computations specified by the user,
(iv) Executing a processing program without human intervention.

The product "Roombr" met all these criteria, as it has significant RAM and storage, an Intel processor, and the capability to perform computations and execute programs autonomously.

Explanatory Notes and System Components:
The explanatory notes specify that an automatic data processing machine may comprise a central processing unit, an input unit, and an output unit within the same housing. The "Roombr" includes a central processing unit, a Bluetooth keyboard and IR pen as input units, and a projected interactive display as an output unit, fulfilling these requirements.

Sub-classification Decision:
Within heading 8471 41, there are sub-headings for Micro Computer, Large or Main Frame Computer, and Others. The "Roombr" does not fit the definitions of a micro-computer or a large/main frame computer, thus it falls under the "Others" category, specifically under tariff heading 8471 41 90.

Ruling:
The product "Roombr," a walltop computer, is rightly classifiable under tariff heading 8471 41 90.

← Previous Next →