2003 (2) TMI 262 - AT - Central Excise

Summary

Issues: Classification of goods under the Central Excise Tariff

Analysis:
The appeal was filed by the Revenue against the order-in-appeal passed by the Commissioner (Appeals) regarding the classification of goods manufactured by the respondents. The respondents initially claimed classification under Heading 9033.90 of the Central Excise Tariff, while a show cause notice was issued for classifying the goods under Heading 8471.00 of the Central Excise Tariff. The adjudicating authority confirmed the classification under Heading 8471.00, leading to an appeal by the appellants. The Commissioner (Appeals) remanded the matter for re-determination, after which the authority again confirmed the classification under Heading 8471.00. Subsequently, the Commissioner (Appeals) allowed the appeal by classifying the goods under Heading 9033.00 of the Central Excise Tariff.

The core contention of the Revenue was that the goods in question were not being freely programmed and were incapable of performing arithmetical computations, which are essential criteria for classification under Heading 8471.00 of the Central Excise Tariff. The Revenue relied on the product literature provided by the respondents to argue that the goods could indeed perform the required functions. The Tribunal examined the product literature and the relevant provisions of the Central Excise Tariff, particularly Chapter Note 5(a) of Chapter 84, which defines automatic data processing machines.

The Tribunal noted that the product literature demonstrated that the goods were programmable and capable of performing arithmetical computations. Contrary to the Commissioner (Appeals)' finding, the Tribunal concluded that the goods satisfied the criteria for classification under Heading 8471.00. Additionally, the respondents' claim for classification under Heading 9033.00 was rejected as the goods did not fall under the scope of that classification.

Therefore, the Tribunal set aside the impugned order and allowed the appeal, directing the classification of the goods under Heading 8471.00 of the Central Excise Tariff. The cross-objection was also disposed of accordingly.