2008 (1) TMI 720 - AT - Customs

Summary

Issues:
Classification of 'Barcoae Printers (Thermal Label Printers)' under Customs Tariff Heading 8471.60 as inputs or output units of automatic data processing machines claimed by importers or under CTH 8443.59 as "printing machinery other than Inkjet Printing machines" as held by the Revenue.

Analysis:
The issue in this appeal pertains to the classification of 'Barcoae Printers (Thermal Label Printers)' under the Customs Tariff Act. The dispute revolves around whether these printers should be classified under Heading 8471.60 as input or output units of automatic data processing machines, as contended by the importers, or under CTH 8443.59 as "printing machinery other than Inkjet Printing machines," as determined by the Revenue.

Upon hearing both sides, it was noted that the manual of the imported goods clearly indicates that the printers are connected to a computer. Reference was made to Note 5D to Chapter 84 of the Customs Tariff Act, which states that printers satisfying the conditions of paragraphs 5B(b) and 5B(c) are to be classified as units of heading 84.71. The conditions specified in Note 5B include being connectable to the central processing unit and able to accept or deliver data in a form usable by the system.

Given that the printers in question meet the conditions outlined in Note 5B(b) and (c), they are deemed to be covered by Note 5D and thus classified as units of Heading 84.71. The authorities had previously excluded the goods from Heading 84.71 by invoking Note 5(E), which deals with machines performing functions other than data processing. However, since Note 5D is not subject to the provisions of Note 5(E), the printers cannot be excluded from the coverage of Heading 84.71.

The Tribunal's decisions in previous cases further support this interpretation, emphasizing that Note 5(D) prevails over Note 5(E) in such classification matters. Therefore, based on the discussions and legal precedents, the Tribunal concluded that the goods in question should be classified under CTH 84.71.60. Consequently, the impugned order was set aside, and the appeal was allowed.

In conclusion, the judgment clarifies the classification of 'Barcoae Printers (Thermal Label Printers)' under the Customs Tariff Act, emphasizing the importance of meeting the specified conditions for classification under the relevant heading. The decision underscores the application of legal principles and precedents in determining the appropriate classification for imported goods, ensuring consistency and adherence to statutory provisions.