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TMI Blog2014 (9) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, by virtue of the words used in 8471 “not elsewhere specified or included”, 8471 do not include ticket issuing machines. When ticket issuing machines are expressly mentioned in 8470 and in the notification issued on 31.3.2006 under the heading “the Information Technology product” 8470 is not included, the assessee is not entitled to the benefit of 4% tax. How the goods are understood in the commercial sense has to be taken into consideration for the purpose of classification of the goods and the scientific and technical meaning has no place. Therefore, when the goods involved is a portable handheld ticketing machine that is how the assessee has described the machine and that is how the customers have also understood it and in the Central Excise Tariff Act this ticket issuing machines are expressly included in Entry 8470, by any stretch of imagination, the Court cannot hold that it falls under 8471 especially when it specifically states that “not elsewhere specified or included”. The notification issued specified 8471 does not include this ticketing machine - Decided against assessee. - STRP No.456 OF 2012 And STRP Nos.702-724/13 - - - Dated:- 9-7-2014 - N Kumar And B Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the claim of the assessee was rejected. Aggrieved by the said orders, these revision petitions are filed. 3. The learned counsel for the assessee assailing the impugned order contended that the product in question is electronic ticketing machine which is an IT product and it falls at Sl.No.4 in the notification dated 31.3.2006 issued including in entry 43 of the III Schedule. Therefore, the assessee is entitled to the benefit of 4% tax as the product in question falls within the III Schedule. 4. Per contra, the learned counsel for the revenue supporting the impugned order contended that the product in question falls under entry 8470 in the Central Excise Tariff Act which is not an IT product. It neither falls at Sl.No.3 or Sl.No.4 of the notification and therefore, the assessee is not entitled to tax at 4% and rightly the authorities have levied tax at 12.5%. Therefore, she submits that no case is made out for interference. 5. In the light of the aforesaid facts and rival contentions, the question of law that arises for consideration in these revision petitions is as under:- Whether portable hand held electronic ticketing machine is an IT produce and fal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormation Technology) products as under:- 3. 8470.10.00 Electronic calculator capable of Operations without an external Source of electrical power and Pocket size data recording, Reproducing and displaying Machines with calculating Functions(including electronic Diaries other than those covered Under heading No.8471) or incorporating a printing device. 4. 8471 Automatic data processing Machines and units thereof; magnetic or Optical readers, machines for Transcribing data on to data media in coded form and machines for Processing such data. The assessee relies on Item No.4 i.e., 8471 and contends that the case falls under the said entry. To the said notification, explanations are added. The explanations reads as under:- Explanations.-(1)The Rules for the interpretation of the Central Excise Tariff Act, 1985 read with the Explanatory Notes as updated from time to time published by the Customs Co-Operation Council, Brussels apply for the interpretation of this notification. (2) Where any commodities are described against any heading or, as the case may be, sub-heading, and the aforesaid description is different in any manner from the corresponding descr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproducing and displaying machines with calculating functions. 8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included. 9. 8471 in the notification at Sl.No.4 is the replica of the description contained in the Central Excise Tariff Act at 8471. In the Central Excise Tariff Act, against the said description in the end they have used the words not elsewhere specified or included . Now 8471 under the Tariff act includes ticket issuing machines. Therefore, by virtue of the words used in 8471 not elsewhere specified or included , 8471 do not include ticket issuing machines. When ticket issuing machines are expressly mentioned in 8470 and in the notification issued on 31.3.2006 under the heading the Information Technology product 8470 is not included, the assessee is not entitled to the benefit of 4% tax. In fact, the Apex Court in the case of Plasmac Machine Manufacturing Company Pvt. Ltd., .vs. Collector of Central Excise, Bombay has held as under:- It is an accepted principle of classification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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