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2023 (6) TMI 857 - AAR - CustomsClassification of goods proposed to be imported - VIEWSONIC Brand LCD Monitors - to be classified under sub-heading 8528 52 00 of Customs Tariff Act, 1975 or not - benefit of exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended - HELD THAT - The subject goods have graphic ports from Advanced Micro Devices, INC, and have built-in VGA and HDMI connectors. The viewable image size of the subject goods are 30 inches except for VX3276-MHD-3 model which is 32 inches. Similarly, to ensure suitability for close proximity viewing, the display pitch size of subject goods is set below 0.3 mm, except for VX3276-MHD3 model which is at 0.364 MM and VA 2732 MH - IN 1 model at 0.31 mm. The emission standards for the subject goods is low, as they are designed for close proximity over a prolonged period of time like desktop monitors, while monitors designed for other uses have a high emission standard as they are to be viewed at a distance. While models VA 2732 MH - IN 1, VX3276-MHD-3 and VA 2432-MH-IN-1 have a built in speaker of 2 x 2 watts, the other models do not have built in speaker. The subject goods have physical control buttons on front panel in all the models and have various ergonomic features such as tilt, swivel, height adjusting mechanism, glare free surfaces and flicker free display. The subject goods can be regarded as being part of an automatic data processing system as it meets all of the conditions specified in Chapter notes 6(C) of Chapter 84. Further, the absence of built in USB driver, SD card external storage connectivity and touch screen capability ensures that the principal function of the subject goods is connecting to an ADPS. However as per paragraph 6(D) 6(E), monitors, not incorporating television reception apparatus when presented separately, cannot be classified under Chapter heading 8471 and have to be classified in the headings appropriate to their respective functions. Accordingly, by virtue of terms of the headings, relative Chapter Notes and HSN Explanatory notes, I find that the subject goods satisfy all essential conditions to merit classification under Chapter sub heading 8528 52 00 as, Monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 . Thus, all the models of 'VIEWSONIC Brand LCD Monitors' covered under present application are classifiable under sub-heading 8528 52 00 of the first schedule to the Customs Tariff Act, 1975 and would be eligible to avail benefit of duty exemption under sr. no. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended.
Issues Involved:
1. Classification of 'VIEWSONIC Brand LCD Monitors' 2. Eligibility for duty exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005 Summary: Issue 1: Classification of 'VIEWSONIC Brand LCD Monitors' The applicant, M/s. Gurmat Impex & Shipping Services, sought an advance ruling on the classification of various models of 'VIEWSONIC Brand LCD Monitors' under Chapter 85, specifically sub-heading 8528 52 00 of the Customs Tariff Act, 1975. The applicant argued that these monitors are capable of directly connecting to and designed for use with an Automatic Data Processing System (ADPS) of heading 8471. They highlighted features like VGA and HDMI ports, low emission standards, and other ergonomic features that align with the characteristics of computer monitors as per CBIC Circular No. 33/2007-Cus. dated 10.09.2007. The applicant contended that the presence of HDMI ports and speakers does not negate their principal function of being used with ADPS. The Authority for Advance Rulings examined the technical specifications and characteristics of the monitors, including their ability to accept signals from a CPU, the absence of built-in USB drivers, SD card connectivity, and touch screen capability. It was determined that the monitors meet the criteria for classification under sub-heading 8528 52 00 as "Monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471." Issue 2: Eligibility for Duty Exemption The applicant sought the benefit of duty exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, which exempts goods solely or principally used in an ADPS of heading 8471 from customs duty. The Authority found that the monitors, being classifiable under sub-heading 8528 52 00, are entitled to this duty exemption. Ruling The Authority ruled that all models of 'VIEWSONIC Brand LCD Monitors' covered under the application are classifiable under sub-heading 8528 52 00 of the Customs Tariff Act, 1975, and are eligible for duty exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended.
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