BLOOMBERG DATA SERVICES INDIA PVT LTD Vs. STATE

JUDGEMENT

(1.) M/s. Bloomberg Data Services (India) Pvt. Ltd. (the name of the applicant as amended and to be referred to hereinafter as the 'applicant') have filed an application under Section 28H(2)(a) of the Customs Act, 1962. The issue, though not framed as a question, on which advance ruling has been sought by the applicant is in respect of classification of Bloomberg 17-inch Flat Panel under Customs Tariff Act, 1975.

(2.) As per the statements filed by the applicant in respect of the point on which the advance ruling is required, they are engaged in the business of providing on-line financial information. To subscribe to these services the applicant provides computer hardware facilities. In this regard they are proposing to import 17" Flat Panel used for personal computers. According to the applicant the product in question is Flat Monitor to be used as an output unit of a computer. As per the specifications/features, this product is not capable of reproducing a colour image from a composite video signal whose waveform conforms to a broadcast standard (NTSC, SECAM, PAL, D-MAC etc.). In their application, they have also enclosed the definition of "composite video signal" as per which such a signal specifies everything a television needs to display monochrome (called RS-170) or colour (called NTSC) pictures. It is called "composite" because the signal which can be carried by a single co-axial cable is composite of three different signals, namely, "luminance information", "blanking information" and "synchronizing information". It has been further submitted by them that the question of alternate classification does not arise and the product in question clearly falls under Chapter heading 8471.60 which reads as "input or output units, whether or not containing storage units in the same housing." The particular monitor proposed to be imported by them is covered by the sub-heading 8471 60 30 of the First Schedule of the Customs Tariff Act, 1975 (hereinafter referred to as "the Schedule") as amended.

(3.) THE applicant has also referred to the HSN Explanatory Note in the context of tariff heading 84.71 which inter alia deals with "Automatic data processing machines and units thereof". Particular attention has been drawn to the well-defined difference between the display units of automatic data processing machines which provide a graphical presentation of the data processed and the video monitors and television receivers of heading 85.28. As per this Explanatory Note the difference is on several counts including five aspects which have been specified in particular in the said Note. It has been pleaded by the applicant that the product in question cannot be used as a video monitor and television receiver of the heading 85.28 and therefore, it would be classifiable under the heading 84.71. THE applicant has also furnished copies of the letter dated 12-9-2003 addressed to the HM Customs and Excise, Education and Support Team - Tariff Classification Service, Customs and International Trade Operations, Essex, UK applying for a Binding Tariff information ruling for Bloomberg 17" Flat Panel and the response thereto dated 26-9-2003 in respect of the goods described as "17 inch Flat Panel computer monitor. To be connected only to a compatible PC. Is operated in VGA, SVGA, XGA and SXGA display modes at 60 Hz (Maximum refresh rate of 75 Hz) 16.2 million colours. Cannot receive a composite video signal.........", expressing the view that it would merit classification under 8471 60 9000 in the customs nomenclature.