9911796707
TMI Blog2023 (6) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows: 1. VA 2732 MH - IN 1 (with HDMI and Speakers) 2. VA 2209 - H (with HDMI) 3. VA 2215 - H - IN 1 (with HDMI) 4. VA 2432 - MH - IN 1 (with HDMI & Speaker) 5. VX 3276 - MHD - 3 (with HDMI & Speaker) 6. VA 1903H-2 (with HDMI) 2. In their application, the applicant has inter alia submitted that Monitors are capable of directly connecting to and designed for use with an Automatic Data Processing System (hereafter known as ADPS) of heading 8471 as per Note 6 (E) of Chapter 84; that the ADPS Monitor have Low Emission standards, while monitors designed for other uses have a high emission standard as they are viewed from a distance and are not used for close proximity over a prolonged period of time like desktop monitors; that the additional High-Definition Multimedia Interface (HDMI) port and Speaker available in the subject goods is to enrich viewers experience; that the HDMI has an aspect ratio of 16:9 so the picture is rectangular and HDMI has a higher resolution of 1920 X 1080 pixels as compared to the analog signals having 704 x 480 pixels and it receives signals digitally, thereby avoids spending time or processing power converting the signal from an analog form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tures came into existence at a later date and technology has greatly evolved since issue of the said Circular. The moot question as per the applicant is whether presence of HDMI Port and Sound Capabilities through speakers in the subject goods, eliminates its prime function of being principally designed to be used with ADPS, thus making eligibility benefit of exemption under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended, inadmissible. In support of their claim, applicant has relied upon the case of Benq India Private Ltd. by the hon'ble CESTAT Delhi, wherein in the case of Projector, Hon'ble Tribunal held that mere presence of multiple ports does not undermine the basic nature of the goods, namely being Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471. Further, reference has been made to a judgement in case of AVECO Viscomm Private Ltd by CESTAT Hyderabad, in Appeal No. C/31037/2017, in the case of Projector classification and opined that the words "Solely or Principally Designed" does not rule out possibility of other usage. The applicant has held on the conviction that advancem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Requirements Actual Goods 1. Usually display signals of Graphics Adaptors Viewsonic models have Graphic ports from Advanced Micro Devices, INC 2. Do not have channel selector or video tuner Videosonic models mentioned do not incorporate a channel selector or Video tuner 3. Monitor are Fitted with connector characteristic of data processing systems (EG RS-232C, DIN, D-SUB, VGA, DVI, HDMI or DP) Viewsonic listed model have both VGA and HDMI connectors 4. Viewable image size does not generally exceed 76 CMS (30 inches) Viewsonic-except for VX3276-MHD-3 Model which is 32 inches, rest all models are below 30 inches 5. Display pitch size (visually smaller than 0.3 mm) suitable for close proximity viewing Viewsonic model VX 3276-MHD-3 alone exceeds 0.3 MM at 0.364 MM. rest all models are below 0.3 MM & VA 2732- MHIN-1 is at 0.31 MM 6. Audio circuit and built in speakers (generally 2 watts or less in total) Viewsonic models have a total of 2X2 watts in models VA 2732 MH-IN-1, VA 2432-MI- 1-IN-1 and VX3276-MHD-3 while balance models do not have a speaker 7. Usually have control buttons in the front pane Viewsonic models has physical control buttons in the front panel i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods for which advance ruling has been sought, its technical specifications, characteristics, functions etc. have been broadly mentioned in aforesaid paras. The issue involved for advance ruling is, if the subject goods namely "'VIEW SONIC Brand LCD Monitor", which are described as Monitors capable of directly connecting to and designed for use with an Automatic Data Processing System are classifiable under Chapter subheading 8528 52 00 of Customs Tariff Act, 1975 or not, and whether they attract duty exemption benefit under Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended, or not. 6 Based on the contents of the application and further submissions I find 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VGA, DVI, USB to receive signals from CPU or storage devices; that they receive RGB signals and do not possess separate audio circuits,; that AR are characterized by low emission standards and have various ergonomic features such as swivel, tilt mechanism, glare free and flicker free surfaces to enable close proximity and prolonged viewing; that the display pitch size is usually 0.28 mm or less and the horizontal frequency is 15 to 155KHZ; that they do not contain components like audio amplifying system, remote function, control panel functions, selection panel with buttons for volume, channel etc., on display unit and wall mounting facility. On examining the inclusions and exclusions of features and specifications as stated in para 6, with the clarification on technical features as provided in the CBIC Circular no. 33/2007 dated 10.09.2007, I find that the subject goods have the essential characteristics to be classified as computer monitors, except that the features of HDMI port or speakers that are present in the subject goods are not quoted in the CBIC Circular. In the instant case, I agree with the applicant's contention that technology has been ever evolving, and the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apable of accepting, a signal from the central processing unit of an automatic data processing machine and provide a graphical presentation of the data processed. These monitors are distinguishable from other types of monitors and from television receivers. The monitors of this group may be characterised by the following features: (i). They usually display signals of graphics adaptors (monochrome or colour) which are integrated in the central processing unit of the automatic data processing machine; (ii). They do not incorporate a channel selector or video tuner; iii. They are fitted with connectors characteristic of data processing systems (e.g., RS-232C interface, DIN, ID-SUB, VGA, DVI, DP (display port) connectors); (iv). The viewable image size of these monitors does not generally exceed 76 cm (30 inches); (v) They have a display pitch size (usually smaller than 0.3 mm) suitable for close proximity viewing; vi. They may have an audio circuit and built-in speakers (generally, 2 watts or less in total); vii. They usually have control buttons situated in the front panel; (viii) They usually cannot be operated by a remote control; (ix) They may incorporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & (E). Paragraph 6(D) inter alia specifies, that heading 8471 does not cover, "Monitors, not incorporating television reception apparatus" when presented separately. And paragraph 6 (E), states that, "Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. I find that 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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