Asus India Private Limited Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that ‘Computer System Desktops’ are classifiable under CTH 8471 as ‘automatic data processing machines’ even though it is being marketed as a gaming PC that is capable of running graphic intensive gaming applications.
Facts- The appellant had filed four Bills-of-Entry for import of goods declared as “Computer System Desktop” under CTH 84713090. Upon examination, the goods were found to be personal computers with accessories like mouse, power adapter and gaming console, and as per the website of the supplier, it was ascertained that the goods were specially designed for gaming purposes. As their principal function was gaming, the goods were re-classified under CTH 9504 5000 by the Revenue.
Conclusion- The imported product is described as a ‘Computer System Desktop’ and has got all the characteristics of personal desktop computers, though enhancements for the purpose of gaming are added to these machines. The impugned product, as long as it satisfies the requirements set forth in Chapter Note 5 (A) to Chapter 84 of the Customs Tariff Act, has to be classified as ‘automatic data processing machine’ though it is being marketed as a gaming PC that is capable of running graphic intensive gaming applications. The lower appellate authority has resorted to Rule 3(c) for classification of the imported product assuming that the description of the impugned goods is not specific. However, as the imported product satisfies the requirements of Chapter Note 5 (A), it shall continue to be an ‘automatic data processing machine’.
Held that considering the differences that exist between video game console, video game machine and the imported product, we hold that the imported ‘Computer System Desktops’ are classifiable under CTH 8471 as ‘automatic data processing machines’. Consequently, we set aside the impugned order.
FULL TEXT OF THE CESTAT CHENNAI ORDER
M/s. Asus India Private Limited, 402, Supreme Chambers, 17/18, Shah Industrial Estate, Veera Desai Road, Andheri (W), Mumbai – 400 053, have filed this appeal challenging the Order-in-Appeal C.Cus. I No. 46/20 18 dated 28.03.20 18 passed by the Commissioner of Customs (Appeals-I), Custom House, Chennai.
2.1 Brief facts of the appeal are that the appellant had filed four Bills-of-Entry for import of goods declared as “Computer System Desktop”, as per the details given below: –
