9911796707
TMI Blog2015 (3) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... eld ticketing machine. As per Annexure-A the assessee is in the business of sale of ticketing machines. The Annexure-"A" which is issued by them reads that it is versatile bus ticketing machines from the pioneers of ticketing machines in India. Introduces compact and rugged hand held bus ticketing machines. Over 10,000/- machines in use in various State Road Transport Corporations including KSRTC, NEKRTC, NWKRTC AND BMTC in Karnataka and KSRTC, Kerala apart from various private organizations in India and Abroad. In the hind portions, they have given the specifications of the hardware. Therefore, in the light of the judgment of the Supreme Court [1990 (11) TMI 142 - SUPREME COURT OF INDIA], 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 imagi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed an appeal to the Tribunal. The Tribunal after referring to the various notifications, the entries in the Central Excise Tariff Act held that bus ticket issuing machines manufactured and sold by the assessee are nothing but ticket issuing machines. Notifications on which reliance is placed does not refer to such ticket issuing machines. Therefore, the product of assessee does not fall under the notification as IT product and is not eligible for rate of tax as provided under III Schedule in entry No.53. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achine as in the case of other mobile devices. 7. Therefore, it was contended that this electronic ticketing machine is an IT product. Schedule-III Item No.53 namely IT products including telecommunication equipments as would be notified are taxed at 4% and therefore, the assessee is entitled to the said benefit. 8. The notification dated 31.3.2006 classifies the goods specified in column-(3) of the table with heading and sub-heading numbers under the Central Excise Tariff Act, 1985 as IT (Information 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 ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the description in Central Excise Tariff Act, which reads as under:- 8470 Calculating machines and pocket-size data Recording, reproducing and displaying machines with calculating functions; accounting machines, postage-franking machines, ticket-issuing machines and similar machines, incorporating a calculating device, cash registers. 8470 10 00 Electronic calculators capable of operation without an external source of electric power and pocket-size data recording, 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
