Case Law Details
In re . Viewsonic Technologies India Private Limited (CAAR Mumbai)
Customs Authority for Advance Rulings (CAAR), Mumbai, reviewed an application by Viewsonic Technologies India Pvt. Ltd. regarding the classification of their Interactive Flat Panel Displays (IFPDs) under the Customs Tariff heading 84714190. The applicant claimed that the panels, functioning as all-in-one computer systems with features like Android OS, touch screens, and extensive computing capabilities, met the criteria for classification as automatic data processing (ADP) machines under Chapter 84 of the Customs Tariff Act. ViewSonic sought clarity due to their planned imports of these products from China, Taiwan, and Vietnam.
CAAR Mumbai noted that the case bore strong similarities to the ruling by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Delhi in the Ingram Micro India Pvt. Ltd. case, which classified similar devices under the same tariff heading. Since the issue had already been decided by the Appellate Tribunal, CAAR, in accordance with Section 28-I of the Customs Act, 1962, declined to issue a fresh ruling, citing legal provisions against readdressing resolved matters. This decision highlights the consistency in applying established rulings to ensure uniformity in tariff classifications.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Viewsonic Technologies India Private Limited, (having IEC No. 0409009709) and hereinafter referred to as ‘the applicant’, in short) filed application (CAAR-1) for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The said application was received in the secretariat of the CAAR, Mumbai on 13.05.2024 along with enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’ also). The applicant is seeking advance ruling on the issue of classification of “Viewsonic- View board Interactive Flat Panel (IFP) Model Nos. IFP92UW, IFP105G, IFP105UW, IFPI 10, IFP110G, IFP5550-5, IFP6533-G, IFP6550-5, IFP6550-5F, IFP6552-1CF, IFP6552-2F, IFP6553, IFP7533-G, IFP7550-5F, IFP7552-1C, IFP7552-1CF, IFP7552-2F, 1FP7553, IFP8633-G, IFP8650-5F, IFP8652-1CF, IFP8652-2F, 1FP8653, IN6501, and 1N7501” under CTI 84714190 (Other automatic data processing machines) of the First Schedule of the Customs Tariff Act, 1975.
2.1 The applicant informed that they are intending to import “Viewsonic VIEWBOARD Interactive Flat Panel (IFP) (25 Model Nos.) (herein after referred as ‘subject goods), from China, Taiwan and Vietnam. The subject goods are an All-in-one (AIO) Computer System, function like a large size tablet computer, and has an inbuilt Mother Board, Micro Processor (CPU), Graphics Card, RAM, and Storage(ROM). It also has an Embedded Android Operating System (OS) with Bundle Software of my View Board for Windows, my View Board Display, my View Board Whiteboard, also having an open pluggable specification slot, thus enabling the user to download and install new programs and operate other operating systems like Windows etc., The applicant is of the view that the subject goods are classifiable under CTH 8471 4190.
2.2 The subject goods is an All-in-one (AIO) Computer System, which functions like a large size tablet computer, and has an integrated system with Central Processing Unit, Mother Board, Graphic Card, Memory (RAM+Storage (ROM)], Touch Screen as Virtual Key Board as an input device and Video Display Unit as an output device. The subject goods are not mere display units, rather they are computer systems with extensive connectivity, which offers versatile plug and play compatibility with Windows, Mac and Chrome OS. The Screen recording capabilities of this IFP enable easy saving of meetings, lessons or notes for later viewing or sharing. The Viewsonic VIEWBOARD IFP’s are having capacity of storing the processing program or programs and at least the data immediately necessary for the execution of the program and the said item is being freely programmed in accordance with the requirements of the user.
2.3 The applicant submitted that the Panel has an “Embedded Android system” pre-loaded with Android 9/11/13/14.0 Android Operating System (OS), which delivers incredible software functionality. Apart from Android OS, this panel is capable of functioning on Microsoft Windows OS etc., This IFP process software applications compatible with the various Android operating system, join wired or wireless networks, access and manipulate folders and files, and perform general computing tasks such as internet browsing, email and editing office documents.
2.4 The subject goods also consists of all the parts of a computer like CPU, memory (ram storage), motherboard, graphic processing using or graphic card, all in one place, inside the display’s body. Like a Tablet computer system the subject goods also typically come with a mobile operating system and touch screen display processing circuitry, and has two classes of Operating Systems, i.e., Mobile Operating System like Android 9/11/13/14.0,and Desktop Operating Systems like Microsoft Windows, Apple Mac and Chrome OS. In other words, Viewsonic VIEWBOARD Interactive Flat Panel (IFP) is an All In One (A10) Computer System, and functions like a large size tablet computer.
2.5 The applicant submitted that subject goods “Viewsonic VIEWBOARD Interactive Flat Panel”, has the necessary Hardware Memory (RAM+ Storage(ROM)], in which the Operating System as well other Software programs are stored to execute the data processing process, and thereby satisfies the condition 5 (A) (l) of the Chapter notes. The software loaded in the IFP being freely programmed in accordance with the requirements of the user, fulfilling the condition given in 5(A)(2) of the Chapter Notes. Viewsonic VIEWBOARD Interactive Flat Panel, perform the arithmetical computations specified by the user which satisfy the condition 5(A)(3) of the chapter notes. It is submitted that Viewsonic VIEWBOARD Interactive Flat Panel has a processing program, which makes it capable of modifying their execution by logical decision during the processing run, so satisfies the condition 5(A)(4) of the chapter notes. other words, the subject goods fulfills all the conditions of 5(A) of the chapter notes, and thereby qualifies to be covered by the definition of Automatic Data Processing (ADP) Machine.
2.6 It is further submitted that the subject goods house, in addition to a Central Processing Unit (CPU), a LED Screen, which serves as the output source, and a touch-sensitive surface, which acts as the source of input.
3. A personal hearing in the matter was conducted on 06.01.2025 at 12.00 PM, through virtual mode. Shri Hari Radhakrishnan, authorized representative of the applicant, appeared for hearing and he reiterated the contention filed with the application. He sought some time to file additional submission in this matter.
The next personal hearing in this matter was conducted on 10.02.2025 at 12.00 PM, through virtual mode. Shri Madan G., the authorized representative of the applicant, appeared for the hearing and reiterated the arguments presented in the application, asserting that the subject goods, namely Interactive Flat Panel Displays (IFPDs) of different models as submitted, merit classification under CTI 84714190. During the hearing, it was also discussed that changes were introduced in the Budget 2025 concerning the classification and rate of duty applicable to Interactive Flat Panel Displays. He further informed that in similar cases of advance rulings issued by CAAR, Mumbai and CAAR, Delhi, the department has filed appeals, which are currently pending before the Hon’ble High Court of Madras, but there is no stay in operation against the said ruling.
No one appeared on behalf of the Department during the hearing.
4. Here, I observe that the Hon’ble CESTAT Delhi in 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 in Appeal Nos. C/50708-50709/2021, decided on 2-2-20221 while deciding the classification of goods namely (Viewboard) Viewsonic Interactive Display System held that the same would be classified under Tariff heading 8471 as an automatic data processing machine since it satisfies the test for an ADP machine under the said heading prescribed under Note 5(A) to Chapter 84 by application of GRI
4. I have perused the technical functions and parameters of the subject goods for which an advance ruling has been sought. Additionally, I have examined the technical functions and specifications of the products, namely Viewboard – ViewSonic IFP6550-2/65″ View Board ViewSonic IFP7550-2/75″, which were involved in the case of M/s. Ingram Micro India Private Limited vs. Principal Commissioner of Customs (Import), New Delhi. Upon analysis, I find that the issue of classification of the subject goods namely “ViewSonic View Board Interactive Flat Panel (IFP)” in the present case is similar to the matter already decided by CESTAT Delhi in the aforementioned case.
6. The relevant excerpts of subsection (2) of section 28-I of Customs Act, 1962 is produced below:
“(2) The Authority may, after examining the application and the records called for, by order either allow or reject the application;
Provided that the Authority shall not allow the application where the question raised in the application is-
“(2) already pending in the applicant’s case before any officer of customs, the Appellate Tribunal or any Court;
(b) same as in a matter decided already by the Appellate Tribunal or any Court:”
7. In. view of the forgoing facts and records of the case, I hereby observe and hold that the question raised in this very application has already been decided by the Hon’ble CESTAT, Delhi in its order dated 02.02.2022 in the case of M/s. Ingram Micro India Private Limited Vv. Principal Commissioner of Customs (Import), New Delhi [Final Order Nos. 50076-50077 of 2022 in Appeal Nos. C/50708-50709/2024 I further observe that the Customs Authority for Advance Ruling, Mumbai as well as Delhi, has issued multiple rulings wherein the ratio of the judgment passed by the Hon’ble CESTAT, Delhi, in the aforementioned case has been followed. Accordingly, I am of the view that the classification matter of Interactive Flat Panel Display has already been decided by the Appellate Tribunal and there is no stay by the Hon’ble High Court on the orders passed by the authority concerning the classification of Interactive Flat Panel Displays. Therefore, in accordance with the provisions of Section 28-1 (2) and proviso (b) of the sub-section (2) of Section 28-I of Customs Act, 1962, I hereby do not allow the application in as much as the matter has already been decided by the Appellate Tribunal.
8. The application is not allowed and disposed of accordingly.
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