In re Audio Distribution House Pvt Ltd (CAAR Mumbai)
Customs Authority for Advance Rulings (CAAR), Mumbai, issued an order rejecting the application filed by M/s. Audio Distribution House Pvt Ltd. The applicant sought an advance ruling regarding the classification of “Optoma Creative Touch 5-Series Interactive Flat Panels” under the Customs Tariff Item (CTI) 84714190, arguing that the product functions as an all-in-one (AIO) computer system. The application was filed under Section 28H (1) of the Customs Act, 1962. The company contended that the device, with its integrated motherboard, processor, RAM, storage, and touchscreen, met the criteria for classification as an automatic data processing (ADP) machine.
During multiple hearings, the applicant reiterated that the product was a fully functional computer with extensive connectivity and compatibility with various operating systems, including Windows, Mac, and Chrome OS. They also argued that the panel fulfilled the conditions outlined in Note 5(A) of Chapter 84, qualifying it as an ADP machine. However, CAAR Mumbai examined the technical specifications and observed that similar classification issues had already been addressed in prior rulings. The authority referred to the case of M/s. Ingram Micro India Private Limited vs. Principal Commissioner of Customs (Import), New Delhi (Final Order Nos. 50076-50077 of 2022), where CESTAT Delhi classified a comparable interactive display system under tariff heading 8471.
