2016 (4) TMI 764 - AT - Customs

Restoration of classification - Import of interactive electronic white board - Whether to be classified under CTH 84716090 as per respondent , CTH 84729090 as per Original Authority or CTH 85285100 as per Commissioner (Appeals) - Held that - the learned Commissioner (Appeals) examined specifically the correct classification of the product with reference to its actual function and applicable Chapter Notes. The impugned order also recorded the impugned goods cannot work without a projector even if it is attached to a computer. The learned Commissioner (Appeals) on seeing the demonstration of the equipment and after examination of the applicable Chapter Notes came to the conclusion that they are correctly classifiable under CTH 85285100. - Decided against the revenue

Summary

Issues:
Classification of interactive white board under Customs Tariff Heading (CTH) 84716090, 84729090, or 85285100.

Analysis:
1. The main appeal was filed by the Revenue against the order passed by the Commissioner of Customs (Appeals), New Delhi, regarding the classification of an imported interactive white board. The Original Authority classified it under CTH 84729090, while the Commissioner (Appeals) classified it under CTH 85285100. The Revenue contended that the goods should be classified under Heading 8472 as a type of machine used in offices, factories, schools, etc., not solely or principally used with Automatic Data Processing Systems of Heading 8471.

2. The respondent filed a Cross Objection, arguing that the Tribunal's decision in a previous case was not applicable to the present situation. The respondent claimed that the Department's appeal lacked merit and that the product should be classified under CTH 84716010/90.

3. The Tribunal examined the nature of the interactive electronic white board, considering the claims of classification under 84716090, 84729090, and 85285100. The product was described as a PC-based Input Equipment used for various functions when connected with a projector and PC. The Tribunal analyzed the technical literature and user guide provided by the respondent to understand the product's features and functionality.

4. The Tribunal assessed the correctness of the classification by the Original Authority under Heading 84729090. It found that the impugned goods, being interactive teaching devices used in classrooms and conferences, did not align with the category of office machines under 8472. The Tribunal also determined that the previous decision cited by the Revenue did not assist in classifying the current product.

5. The competing claims between CTH 8471 and 8528 were evaluated. The respondent argued for CTH 8471, while the Commissioner (Appeals) classified the product under CTH 85285100. The Tribunal considered Chapter Note 5, which clarified the classification of monitors and projectors not incorporating television reception apparatus. It concluded that the white board, primarily a display device, should be classified based on its function and relationship with a computer and projector.

6. The Commissioner (Appeals) correctly classified the product under CTH 85285100 after examining its actual function and relevant Chapter Notes. The impugned order highlighted that the white board could not operate without a projector, leading to the conclusion that it should be classified under CTH 85285100. Based on the thorough analysis and discussion, the Tribunal dismissed the Revenue's appeal and disposed of the Cross Objection filed by the respondent.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the Tribunal's reasoning behind the classification of the interactive white board under the Customs Tariff Headings.