2005 (3) TMI 200 - AT - Customs

Summary

Issues: Correct classification of Ink-jet printer under Chapter Heading 84.43 or 84.71

Classification under Chapter Heading 84.71:
The appellants argued that the ink-jet printer should be classified under Heading 84.71 based on Note 5(D) of Chapter 84, which states that certain devices are to be classified as units of data processing systems if they meet specific conditions. The appellants contended that the ink-jet printer satisfies these conditions, making it classifiable under Heading 84.71. They also cited relevant case laws to support their argument.

Classification under Chapter Heading 84.43:
The Department, on the other hand, relied on Chapter Note 5(E) of Chapter 84 to argue that machines performing a specific function other than data processing and working with automatic data processing machines should be classified based on their respective functions. The Department presented evidence that the ink-jet printers in question had characteristics of printing machines designed for specific functions in the printing or graphics industry. This argument was supported by references to the HSN explanatory notes and information from the importers' website.

Judgment:
After considering the arguments from both sides, the Tribunal analyzed the relevant chapter notes and explanatory materials. While Note 5(D) supported the appellants' classification under Heading 84.71, the Tribunal noted that Note 5(E) was crucial in determining the classification. The Tribunal found that the ink-jet printers imported by the appellants, based on their specifications and use in the signage industry, were more suited for classification under Heading 84.43, which covers printing machinery used for specific printing functions. The Tribunal highlighted that ink-jet printers could be classified under either Heading 84.71 or 84.43, but based on the specific characteristics and industry use of the imported printers, they concluded that the correct classification was under Heading 84.43. Therefore, the appeals were rejected, affirming the classification under Chapter Heading 84.43 for the ink-jet printers in question.