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TMI Blog2017 (8) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Autodesk had specifically designed the generic panel device for the above purposes, Similarly DVS Centaurus audio video devices were designed to perform a specific function which a normal data processing machine would not contain. Hence the impugned goods will necessarily go out of the scope of CTH 84713090. Though the imported goods may well have a high performance IBM CPU (server) with advanced key boards and although the equipment may have many of the elements of an automotive data processing machine, nonetheless, they are specifically designed to perform a specific function other than data processing, namely, that of performing high end task of colour gradation/correction. Hence the classification of the goods will then be governed by Section notes 3 & 4 of the first Schedule to CTA read with Chapter Note 5E of Chapter 84, and the imported goods will then have to be considered as a machine intended to contribute together to a clearly defined function covered by heading 85438960 as a colour corrector. Classification of the impugned goods under CTH 85438960 having the primary function of colour corrector upheld - appeal dismissed - decided against appellant. - C/384/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the film by putting the film into the machine and a computer is used only to control the machine, hence it is only computerized colour grading system. (ii) Ld. Advocate draws attention to technical write up in respect of the imported goods sent by e-mail by Shri S.Sai Prasad, Director from the U.S.A which has been submitted at page 12 of the appeal. The imported item is therefore only an automatic data processing machine employing software which does not directly deal with, or process exposed cinematographic colour films. On the other hand, automatic data processing with the help of the software processes only the material in which movies are loaded or recorded in digitalized form in the condition as it has been imported does not merit classification under CTH 8543 but as an automatic data processing machine under appropriate heading CTH 8471. 3. On the other hand, Ld.A.R supports the impugned order. He further draws attention to the tariff heading, CTH 8471. He submits that contention of appellant that the items should fall under, CTH 84713090 is not correct, since the parental sub heading, CTH 847130 only covers portable automatic data processing machine, weighing not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8543 Electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter . ..... . . . --- Edit control unit: 8543 89 51 ---- Computerised editing system controlling more than three video editing machines u 15%- - 8543 89 52 ---- Other video control units u 15%- - 8543 89 59 ---- Other u 15%- - 8543 89 60 ---- Colour correctors u 15%- - 4.3 At stake is the eligibility to avail exemption granted to specified goods from the whole of custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing machine are to be classified in heading 8471. (D) Printers, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of paragraphs (B) (b) and (B) (c) above, are in all cases to be classified as units of heading 8471. (E) Machines performing a specific function other than data processing and incorporating or working in conjuction with an automatic data processing machine are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. [emphasis added] From these Chapter Notes, it can be interpreted that in case specific function of the item is other than data processing, however, item incorporates or works in conjunction with automatic data processing machine, such a machine is to be classified in the headings appropriated to the respective functions. This interpretation is further reinforced by Note 7, in Chapter 84 which clarifies that A machine which is used for more than one purpose, is, for the purpose of classification, to be treated as if its principal purposes were its sole purpose. 4.6 Section Notes 3, 4, 5 to Section XVI of the Schedule lays ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engine offers superior performance and image quality which is ideal for grading digital interrelates and film scan at any retroaction, including 2K and 4K. The main features at a glance is that the Real time primary color grading of 10 and 16 bit 2K scans, extensive selective color correction tools etc., What is understood from the above is that the item under import is a colour grading system, discreet luster master station (color corrector), consisting of: IBM servers, Colour monitor, DVS Centaurs audio08, storage devices Generic control panel device and others. The item under import is a unit, which is used for grading digital intermediates, in this case a digital film (Digital Cinema). Also the catalogue clearly states that the items under import are Designed to meet the highly specialized needs of directors of photography and colorists, Lustre provides with concepts, intuitive tools and the unique ability to fully participate in colour grading and look design as part of the digital intermediates process . (Emphasis added) The features of the system includes apart from others, primary Colour correction, selective Colour correction, continually grading and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 of the impugned order found that: The goods were clearly shown to have been designed to meet the highly specialized needs of Directors of photography and colorists, that it include features such as primary and selective color correction, grading, tracking, effects, animation, playback, video capabilities such as pan and scan, conforming and editing etc. It was also brought out how some of the equipments such as IBM Intellistations and some of the cards such as the Centaurus, SD stations, NVIDIA QUADRO graphics accelerator cards and generic control panel etc were all specialized equipment tailor made for editing, composing and other highly specialized uses in the field of video film color correction and manipulation. These averments have been strongly backed by a large number of catalogues / brochures of these proprietary products, which have all apparently been brought together by the manufacturers M/s. Autodesk under the umbrella of the 'Discreet lustre master station'. The specialized and specific nature of the goods under import was shown to be the reason why the goods could not be classified merely as an automatic data processing machine or as computer peripheral ..... X X X X Extracts X X X X X X X X Extracts X X X X
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