2004 (10) TMI 477 - AT - Central Excise

Summary

Issues:
Classification of "Polaroid Digital Imaging Systems" under Customs Tariff Heading No. 8471.50 or 9006.53.

Analysis:
The appeal involved a dispute over the classification of "Polaroid Digital Imaging Systems" comprising various components. The respondents claimed classification under Heading No. 8471.50 as automatic data processing systems, while the assessing authority classified them under Heading No. 9006.53 for cameras. The reason for the latter classification was that the system primarily functioned for digital imaging and producing appliances, adapting to computers with SCSI interface, focusing on photography rather than data processing, even though it worked with Automatic Data Processing. The assessment noted that while not a conventional camera, the system operated similarly to a camera, capturing and reproducing images instantly on film.

The Commissioner (Appeals) disagreed with the Assistant Commissioner's classification, stating that the device surpassed the definition of a camera. Referring to H.S. explanatory notes, it was highlighted that a camera traditionally held film and contained a shutter, while in digital photography, a digital camera was akin to a conventional camera but with a CCD instead of film. By comparing the imported goods with digital cameras in catalogues, the Commissioner concluded that the goods were more akin to computers than cameras, overturning the Assistant Commissioner's decision. The revenue's appeal challenged this finding.

During the proceedings, the respondents sought an adjournment to appoint an advocate but were absent during the hearing. The revenue's appeal emphasized the description of the imported goods as Polaroid Digital Imaging System PRO Palette 8000, HR 6000 (film recorder), Sprintscan 35 scanners, and 6x7 Camera Back for PPS. The goods were examined and found to include cameras, with the system capable of producing high-quality photographic images with precise details.

Upon thorough consideration and examination of the literature, the Tribunal determined that the imported goods resembled photographic cameras with advanced features. While the system utilized automatic data processing, this component served to enhance and refine the primary function of producing photographic images. Consequently, the Tribunal deemed the classification under Heading No. 9006.53 more appropriate than Heading No. 8471.50, as accepted by the Commissioner (Appeals). Consequently, the revenue's appeal was allowed, and the Commissioner (Appeals)'s order was set aside.