CE - Regarding classification of STD/PCO Monitor - Reg. - Central Excise - Order No. 54/1/99-CX.

Order No. 54/1/99-CX. Dated 5-4-1999 [From F. No. 154/14/98-CX. 4] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : CE - Regarding classification of STD/PCO Monitor - Reg. It has been represented that there is a lack of uniformity in the classification of STD/PCO monitor, and this has resulted in disparity in the rate of duty charged and in the prices of such goods. Doubts have also been expressed as to whether STD/PCO Monitor, also known as Charge Indicator are classifiable under Heading Nos. 84.70, 90.29, 90.32, 9032.80 or 91.06 of the Schedule to the Central Excise Tariff Act, 1985 (henceforth referred to as the Tariff). 2. The STD/PCO call monitor was earlier classified under Heading No. 90.29 as per the decision of the South Zone Collectors' Conference held in 1993 circulated under F. No. 172/4/93-CX. 4, dated 24-1-94. This decision was based on the premise that STD/PCO Monitor is an instrument akin to 'Electro magnetic Counters' used in automatic telephone exchanges to count the telephone calls, with some additional facilities like recording the duration of time and the amount chargeable for the calls made. 3. Heading No. 90.29 covers mechanical or electronic counting devices which count unit by unit like production counters, revolution counters, taximeters etc. However, an STD/PCO Monitor is not merely a counter which counts unit by unit but is a microprocessor based electronic device, which performs calculations based on the preprogrammed/programmable memory. The STD/PCO call monitor is a parallel interface to be attached with a telephone line for calculating and billing purposes. The main function of such instrument is to provide accurate billing of local/STD/ISD calls after totalling the 16 KHz pulses received from the telephone exchange. It calculates the amount payable by a person depending on the duration of call, the time when the call is made and the rate prevalent for the distance between two places connected by the call. These are thus in the nature of calculating machines and are covered under Heading No. 84.70. 4. The Central Board of Excise Customs (henceforth referred to as Board) have considered the classification of STD/PCO Monitor, keeping in view their specific use, technical specifications, Section Notes under Section XVI, tariff headings under Chapter 84, HSN explanatory notes and other relevant facts. The Board is of the view that the product STD/PCO call monitor would be more specifically covered under the category of calculating machines rather than counters, and would merit classification under Heading No. 84.70 of the Tariff. 5. Therefore in exercise of the powers conferred upon under Section 37B of the Central Excise Act, 1944 (1 of 1944) (henceforth referred to as the Act) and for the purpose of ensuring uniformity in the classification of these goods and the levy of duty, the Board hereby orders that the said STD/PCO Monitor shall be classifiable under Heading No. 84.70 of the Tariff. 6. The Board further, directs that a copy of this Order be sent to all Commissioners of Central Excise who shall inform appropriately all other persons employed in the execution of the provisions of the Act.