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TMI Blog2022 (10) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... held the LCD monitors with aforesaid features, bearing specific model numbers (which are different from those covered by this ruling) under Heading 8528.52. On complete reading of the guidance provided by Chapter Note 6, it is evident that the goods in question, which are monitors, not incorporating television reception apparatus, and are capable of directly connecting to and designed for use with an automatic data processing machine of Heading 8471 do not merit classification under Heading 8471. Further, in terms of Note 6(E) of Chapter 84, such goods merit classification under the heading appropriate to their respective functions, which in the present case is display of images and videos - the appropriate heading for monitors, not incorporating television reception apparatus is 8528. Further, at the sub-heading level, non-cathode ray monitors are classifiable under other monitors, and those that are capable of directly connecting to and designed for use with an automatic data processing machine of Heading 84.71 are classifiable under sub-heading 8528 52 00. Thus, all the 10 model of LCD Monitors or Touchscreen CD Monitors, viz. PN-HW861, PN-HW751, PN-HW651, PN-HW551, PN-HW ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019. 2. The application has been filed for determination of classification of Sharp Professional LCD monitors (of specified models and size), which they intend to import and applicability of Serial Number 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended on import of the these goods. In the application for advance ruling filed by the applicant, it is also stated inter alia that the subject goods support landscape and portrait view mode, include SD card slot, D-sub input, DVI-D input/output, HDMI input and USB port; monitors can read and reproduce video from USB memory device and SD card; the monitor is not cathode-ray monitor and do not contain television tuner or any television reception capabilities; these are not only capable of connecting to and designed for use with an Automatic Data Processing (ADP) machine of Heading 8471 but also used solely or principally in ADP machine of Heading 8471. In light of the submissions, the applicant has raised following questions for advance ruling : (i) Whether prospective import of Sharp professional LCD monitors (of specified model and size) are classifiable under sub-heading 8528 52 00 or 8528 59 00 of the Firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t date and time for the personal hearing; hosting of Notice dated 28-9-2021 on the official website of the department, www.cbic.gov.in and reminder dated 5-10-2021. Thereafter, the applicant s representative vide their letter dated 8-10-2021 sought adjournment of personal hearing to 12-10-2021, which was accepted. 7. Shri Rajnish Kumar, Chartered Accountant and Shri Chandrakesh Dwivedi attended the personal hearing on 12-10-2021. Shri Rajnish Kumar informed about the continued interest of the applicant in obtaining ruling on question of classification and eligibility for concessional rate of duty for their product under the relevant notification. He informed that they propose to import the said Automatic Data Processing (ADP) monitor after obtaining clarification regarding Customs duty implications for the same. He explained that owing to changes in the HS nomenclature, Customs Import Tariff had also undergone some amendments; as per HS 2017 edition, under Other monitors; sub-heading 8528 52 00 reads as -- capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471; whereas in HS 2012 edition, under Other monitors; sub-heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Circular No. 33/2007-Customs, dated 10-9-2007 of the Central Board of Indirect Taxes and Customs; they also placed reliance on Ruling No. CAAR/Mum/ARC/63/2021, dated 28-10-2021 Re : M/s. Audio Distribution House Pvt. Ltd. of the Customs Authority for Advance Rulings, Mumbai. Lastly, it is requested for ruling to classify the prospective import of LCD monitors having brightness of 400 cd/m2 or less under sub-heading 8528 52 00 and allow exemption under Serial Number 17 of Notification No. 24/2005-Cus. 9.1 In the application dated 17-7-2019, the applicant had mentioned Commissioner of Customs, Chennai Customs as the concerned Commissioner of Customs. It was noted that the jurisdictional Commissioner for imports through Chennai port and Air Cargo complex are Commissioner of Customs Chennai-II and Commissioner of Customs Chennai-VII respectively. Therefore, upon confirmation by the applicant that he wishes to have a ruling applicable to both Chennai seaport and ACC, comments of both Commissioner of Customs Chennai-II and Chennai-VII have been obtained. 9.2 The concerned Commissioner of Customs, Chennai-II vide letter dated 28-1-2022 has mentioned that there are multiple mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be programmed to play photos and videos automatically; they are therefore capable of use without any connected PC or even a set top box for display of high resolution photos and videos; they are capable for use for signage for hospitals, commercial and retail settings like stores, institutions etc. as electronic posters or video output devices; therefore they can be used for large display purposes and not meant to be a simple output device for computer in these applications; it is meant for 16 hour continuous applications in rugged environment; in addition, the PN R903A model is capable of playing simultaneous AV and PC modes on screen in a picture in picture mode and upto 25 of these devices can be connected in daisy chain mode of uniform display and are ruggedized for continuous 24 hour applications; as regards PN 85HC1, PN75HC1 and PN 70HC1E models, these are capable of use without a PC as they have a touch screen and can be used for classroom display like a White Board and where the program can be launched, interrupted and used as a writing board and even without a PC, overlay annotations to photos, documents and videos; it has open pluggable spec controller modes designed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. The applicant has also reiterated the submissions made earlier vide their application for advance ruling. 10. I find that the application is admissible in terms of the provisions of Section 28-I and CAAR Regulations, 2021 and, therefore, allow the same. 11. I have carefully gone through the application dated 17-7-2019, additional submissions made vide their letters dated 16-12-2021 and 7-3-2022, contentions made therein, including reliance placed on US Customs and Border Protection Ruling dated 9-3-2017, C.B.I. C. Circular No. 33/2007-Cus., dated 10-9-2007, and CAAR Mumbai Ruling No. CAAR/Mum/ARC/63/2021, dated 28-10-2021, comments of the concerned Principal Commissioner/Commissioner of Customs and have also heard the representatives of the applicant during the personal hearing held on 12-10-2021. 11.1 Before proceeding further with examination of the questions posed for advance ruling on merit, I note that as per original application for advance ruling, ruling has been sought on classification of 59 models of Sharp Professional LCD Monitor, model and size as per Annexure-IV. Thereafter, a question was raised regarding the absence of details in respect of these 59 mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Rulings, Mumbai in the Ruling No. CAAR/Mum/ARC/63/2021, dated 28-10-2021 regarding the application filed by M/s. Audio Distribution House Pvt. Ltd., Mumbai ruled that data projectors , which supports connections such as HDMI, VGA-in/out, composite audio-in/out, USB-A, RS232, which are designed primarily to be used with ADP system has held that the goods are classifiable under sub-heading 8528 62. I find that the goods covered by the said advance rulings cover projectors, which are designed primarily to be used with ADP system, whereas the application before me relate to monitors, which are capable of directly connecting to ADP machine and are designed for use with ADP machine of Heading 8471. 15. The applicant has also drawn attention to C.B.I. C. Circular No. 33/2007-Cus., dated 10-9-2007 regarding Classification of Digital LCD/Flat Panel Monitor - admissibility of notification benefits, wherein inter alia, it has been advised that consequent to HS 2007 changes, all types of monitors and projectors which are solely or principally used with an ADP machine is covered under sub-heading 8528 41. 16. Therefore, 1 find that sub-headings 8528 52 00, 8471 50 00 and 8471 41 90 n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it could be possible to classify the said monitors under Heading 8471 , 16.5 However, on a more careful reading, it is seen that Chapter Note 6(C) is subject to Chapter Note 6(D) and (E), with the former prescribing that Heading 8471 does not cover the following when presented separately, even if they meet all the conditions set forth in paragraph (C) . Sub-clause (v) provides for the exclusion of monitors and projectors, not incorporating television reception apparatus. Moreover, Note 6(E) also provides that machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function are to be classified in headings appropriate to their respective functions or failing that in residual heading. 16.6 Therefore, on complete reading of the guidance provided by Chapter Note 6, it is evident to me that the goods in question, which are monitors, not incorporating television reception apparatus, and are capable of directly connecting to and designed for use with an automatic data processing machine of Heading 8471 do not merit classification under Heading 8471. Further, in terms of Note 6(E) of Chapter 84, such goods merit clas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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