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TMI Blog2003 (6) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... at the respondent imported. Notice issued to it proposed to deny the benefit of the exemption and to confiscate them on the ground that they were personal computers of a value of less than Rs. 1 lakh each the import of which was prohibited. Adjudicating upon the notice, the Commissioner held the goods eligible for free importation and entitled to the benefit of the exemption. Hence this appeal by the department. 2. The department s appeal has two contentions. The first is that what was imported was 55 personal computers, each of a value less than Rs. 1 lakh. As the policy stood at the time when the goods were imported in October, 1995, personal computers of value less than Rs. 1.5 lakh required an import licence. The second ground is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to comprise a processor with a device for storage and a memory which is used to process data, such data may be available to be used by means of a peripheral device such as a monitor or a printer. Each of these 15 machines was capable of being so used. We therefore do not think that they can be called anything other than personal computers. The value of each of these machines is less than Rs. 30,000/-. They are therefore been hit by the bar contained in the policy as to importability. 5. The other machines however cannot in our opinion be considered as personal computers. None of them by itself can carry out the function of a personal computer of performing arithmetical or logical calculations and storing data required for this purpose in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valued at much higher freight. We are therefore satisfied that except for the 15 computers that were separately imported, the goods were permitted to be imported. These 15 computers would be liable to confiscation. 7. The other question that is to be addressed whether the goods, the elements of the LAN, would be capital goods or not for the purposes of the exemption notification. The appeal contends that these goods are in the nature of office machines, therefore, would not be capital goods. This proceeds on the basis that Heading 84.72 in the Tariff refers to other office machine, data processing machines in Heading 84.71 are nothing other than office machine. The Explanatory Note to the Harmonised System of Nomenclature that Heading 84 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this is a more or less repetition of definition of capital goods under Rule 57Q of the Central Excise Rules. It must be kept in mind that the liberal interpretation of this provision of the Larger Bench of the Tribunal in Jawahar Mills v. CCE - 1999 (108) E.L.T. 47 (Tri. - LB) = 2000 (90) ECR 387 to include within its ambit machines, etc., which by themselves directly to bring about change in substance or use produces any commodity or those without which the commodity in question can be produced such as electrical cables, welding rod, etc., has been approved by the Supreme Court on merits [CCE v. Jawahar Mills Ltd. - 2001 (132) E.L.T. 3]. In addition, the definition of the term capital goods in the import policy, is very widely covering m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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