2010 (10) TMI 147 - AT - Customs

Printer Graphic Printer - classified as an ADP machine under Heading 84.71 - machine under import does not work as an ADP machine carrying out the function of data processing but merely incorporates an in-built system for controlling and operating the machine itself - goods cannot either be classified as an ADP machine or as a part thereof, in view of Chapter Notes 5(E) and 5(B) - classification of the impugned goods ordered under residual sub-heading 8479.89, therefore, does not require any interference - appeal dismissed

Summary

Issues: Classification of imported goods under sub-heading 8471.60 or 8479.89.

Analysis:
1. Issue of Classification: The case revolves around the classification of the imported 'Nipson 8000/200/SED Graphic Printer' under sub-heading 8471.60 as claimed by the appellants or under 8479.89 as held by the authorities below. The machine uses a unique non-impact printing technology called magnetography and has various applications including on-demand printing of books, manuals, and financial statements. The physical dimensions and weight of the machine are also provided.

2. Classification Rules: The original authority referred to Chapter Note 5(E) and Chapter Note 5(B) which exclude the classification of machines performing functions other than data processing under Heading 84.71. The machine, despite having an in-built computer system, does not function as an Automatic Data Processing (ADP) machine but works in conjunction with a separate ADP machine. Both authorities concluded that the machine cannot be classified as an ADP machine or a part thereof, necessitating classification under the residual Heading 84.79.

3. Legal Argument: The appellants' advocate argued that the machine should be classified as an ADP machine due to its in-built computer system. However, this argument was deemed unacceptable as the machine does not perform data processing functions but merely controls and operates itself. The machine's connection to a separate ADP machine further supports its classification under the residual Heading 84.79 as per Chapter Notes 5(E) and 5(B).

4. Judgment: The appellate tribunal upheld the classification of the impugned goods under residual sub-heading 8479.89 after a detailed examination of technical literature and relevant Chapter Notes. The decision to classify the goods under 8479.89 was based on the machine's characteristics and its operational relationship with an ADP machine. Consequently, the appeal was dismissed, affirming the authorities' classification decision.

In conclusion, the judgment focused on the proper classification of the imported 'Nipson 8000/200/SED Graphic Printer' based on its technical features, operational functions, and relevant classification rules under the Customs Tariff Act. The detailed analysis provided clarity on why the machine was classified under the residual Heading 84.79 rather than under sub-heading 8471.60, emphasizing the importance of accurate classification for customs and duty purposes.