2006 (11) TMI 388 - AT - Customs

Summary

Issues:
The correct classification of the Data Processing Unit imported by the appellants along with the differential scanning calorimeter.

Details:
The dispute revolves around whether the Data Processing Unit should be classified under Customs Tariff Heading 9027.90 as claimed by the appellants or under Heading 84.71 as classified by the revenue. The appellants argue that the Disk station SSC 5200H is dedicated for thermal analysis and cannot be used for general purpose data processing. They claim it is an integral part of the Thermal Analysis Module DSC 220 with no independent use.

The original adjudicating authority noted that the Disk station SSC 5200H consists of components like RAM, Hard Disk, CPU, and is connected to various Analysis Modules. It can store data, execute temperature programs, and perform data analysis without restrictions. The authority classified it as an automatic data processing machine under Heading 84.71 based on its capabilities and functions in conjunction with the imported Thermal Analysis Module DSC 220.

The appellants argued that under Section 4 of Section XVI, when a machine consists of individual components contributing to a defined function covered by a specific heading, the entire machine should be classified accordingly. However, the revenue relied on Chapter Note 5(A)(a) of Chapter 84 which defines an automatic data processing machine.

According to the definition provided in Chapter Note, an automatic data processing machine includes digital machines capable of storing processing programs, being freely programmed, performing arithmetical computations, and executing processing programs without human intervention. The appellants did not dispute that the Disk Station is a data processing machine but contended that its classification should align with the calorimeter under Chapter 90.

The Tribunal found no merit in the appellants' argument, stating that Heading 84.71 specifically covers automatic data processing machines. The Chapter Note clarifies that machines working in conjunction with an automatic data processing machine are classified based on their specific functions or in residual headings. Since the imported goods are not a combination of machines and the Data Processing Unit is an independent machine programmed to work with the calorimeter, the classification remains under Chapter 84.

Therefore, the Tribunal rejected the appellant's appeal based on the classification of the Data Processing Unit and upheld its classification under Heading 84.71.