Philips India Limited Vs Commissioner of Customs (Import) (CESTAT Mumbai)
Summary: CESTAT Mumbai allowed Philips India Limited’s appeal concerning classification of LCD monitors imported for use with medical equipment such as ultrasound machines, X-Ray machines and CT Scan systems. The disputed imports were made during 29.07.2017 to 26.02.2022. The department had proposed classification under CTI 8528 5900 and IGST at 28%, whereas the appellants claimed classification under CTI 8528 5200 and IGST at 18%. The Tribunal examined the tariff entries under heading 8528, the relevant provisions of the Customs Act, 1962 and Customs Tariff Act, 1975, Notification No. 01/2017-Integrated Tax (Rate), CBIC Circular No. 33/2007-Customs dated 10.09.2007 and the WCO HS Explanatory Notes. It found that monitors capable of directly connecting to and designed for use with an ADP machine are distinguishable from other monitors by their technical characteristics and functions. The Tribunal held that the impugned monitors were appropriately classifiable under CTI 8528 5200 and that the applicable IGST was 18%. It also held that the finding that Serial No. 384 required classification specifically under CTI 8528 5200 was contrary to the notification, which referred to heading 8528. The impugned order dated 21.07.2023 was set aside and the appeal was allowed.
Background of the Dispute
Philips India Limited imported LCD monitors through the Air Cargo Complex, Mumbai, for use with medical equipment including ultrasound machines, X-Ray machines and CT Scan systems. During the disputed period from 29.07.2017 to 26.02.2022, the appellants classified the LCD monitors under Customs Tariff Item (CTI) 8528 5200 and claimed IGST at 18% as applicable to computer monitors under Serial Nos. 383C and 384 of Schedule III to Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017.
