2008 (9) TMI 222 - AT - Customs

Classification of imported Modular Work station with 15 LCD and 9 expansion slots - importer claimed classification under CH 84715000 as Automatic Data Processing and revenue claimed classification under Heading 84799090 - Chapter Note 5(E) of Chapter 84 which mainly deals with machines which incorporates and works in conjunction with an automatic data processing is not applicable because imported item itself is automatic data processing machine- items are classifiable u/ch 84715000

Summary

Issues involved:
Correct classification of imported goods under CH 84715000 or Heading 84799090.

Analysis:
The appeal revolved around the classification of "Modular Workstation with 15" LCD and 9 expansion slots" imported by the respondent. The Department argued for classification under Heading 84799090, while the respondent claimed classification under CH 84715000. The Original Authority imposed penalties and allowed clearance at applicable rates. The Commissioner (Appeals) disagreed with the Department and classified the goods under Chapter Heading 84715000 as Automatic Data Processing. The Revenue appealed on various grounds.

Grounds of Appeal:
1. The Commissioner (Appeals) erred in setting aside the OIO, claiming the goods were not Automatic Data Processors.
2. The impugned item was considered an integrated computing workstation, performing functions beyond data processing, thus not an ADP machine.
3. The Commissioner (Appeals) failed to consider an Importer letter supporting classification under CH 84799090 based on functionality.

Respondent's Submissions:
The Department claimed classification under 84799090, while the respondent argued for 84715000. The respondent highlighted Chapter Note 5(E) of Chapter 84 as the basis for classification. The Commissioner (Appeals) concluded that the item should be classified under Heading 8471 due to its data processing capabilities and subsequent usage in friction welding machines.

Legal Analysis:
The Tribunal carefully examined the issue and concluded that the imported goods were indeed 'Modular Workstations with 15" LCD' and not excluded under Chapter Note 5(E) of Chapter 84. The Tribunal supported the Commissioner (Appeals) decision, citing the case of M/s. Shaf Broadcast Pvt. Ltd. The Tribunal emphasized that the imported item itself was an automatic data processing machine, to be used in conjunction with welding machines post-importation. Therefore, Note 5(E) did not apply, and the classification under 8471 was deemed appropriate. The Tribunal rejected the Revenue's appeal, upholding the Commissioner (Appeals) order.

This detailed analysis highlights the classification dispute, arguments presented by both parties, legal interpretations, and the final decision by the Tribunal, providing a comprehensive overview of the judgment.