9911796707
TMI Blog2002 (11) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... Heading 8471.00 of Central Excise Tariff Act, 1985 at the rate of 15% ad valorem. In view of audit objection, the classification of add on cards was proposed to be 8473.00 chargeable to duty @ 20% ad valorem in view of HSN Chapter Heading 8473 which covers parts/accessories which are interchangeable parts/devices (page 1401 of HSN). It further clarifies that an assembly consisting of a number of electronic micro-circuits mounted on appropriate shaped carrier and designed as a part of a digital data processing machine storage falls under Heading 84.73. The appellants were issued two show cause notices for differential duty as under : SCN dt. 30-12-94 for Rs. 7,51,244/- for June, 94 to August, 94. SCN dt. 25-5-95 for Rs. 15,00,335/- for Dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Heading 84.71 in view of the letter dated 13-2-95 of M/s. Altos India Ltd., the Tribunal s decision reported in 1997 (89) E.L.T. 205 (T) and cards being housed units fall under Heading 84.71 considering the HSN Explanatory Notes thereunder. Shri Ram Pal Singh, learned Consultant appearing on behalf of the appellants drew our attention to their letter dated 27-7-89 at page 20 addressed to the Assistant Collector of Central Excise wherein they have written that pursuant to verbal instructions to change the classification list for add on cards from classification Heading 84.73 to 84.71, they will be submitting their revised classification list very shortly. On the query from the Bench, the learned Consultant pointed out that he has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come final against them. 3. Smt. Krishna A. Mishra, learned SDR, has appeared on behalf of the Revenue and submitted that scientifically the purpose of add on card is to enhance the capacity. With regard to the Heading 8471, she drew our attention to Note 5(A) and (B) of Chapter 84 which states as under : For the purposes of Heading 84.71, the expression automatic data processing machines means : 5(A) Digital machines, capable of (1) storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme; (2) being freely programmed in accordance with the requirements of the user; (3) performing arithmetical computations specified by the user; and (4) executing, without human ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine, or to increase its range of operations. She, therefore, contended that in view of the Note (5A) and (B) will not be applicable and the goods in question will fall under Heading 8473. She also drew our attention to the classification list filed by the appellants wherein the appellants themselves have classified the goods in question under Heading 8473. 4. In rejoinder, the learned Consultant submitted that his entire argument is based on HSN and the product add on card is also called as call control and adaption unit. In this regard, he drew our attention to page 87, point No. 6(a) which states that apart from these, add on card (also known as adaptors) which are controlled and adaptor units such as those to effect inter-connecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(A) and 5(B) to Chapter 84 of the Tariff as under, the Tribunal has held that Add-on-Cards cannot be considered as automatic data processing machine themselves as they are not capable of performing functions which are performed by an automatic data processing machine and these have to be linked up with certain other components to be able to perform the function as are set out thereunder : 14. We observe that Chapter Note 5(A) and 5(B) have to be read together. Chapter Note 5(B) is only an extension of 5(A) and the scope of the automatic data processing machines has been enlarged by the provision of Chapter Note 5(B). 15. By this note, the individual units of the machines to give a desired input or to perform a satisfied function, are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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