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TMI Blog2008 (9) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent. 3. We heard both sides. 4. The issue involved is the correct classification of "Modular Work station with 15" LCD and 9 expansion slots" imported by the respondent. They claimed classification under CH 84715000. The Department felt that the classification should be under Heading 84799090. Consequently, proceedings were initiated against the respondent. The goods were held liable for confiscation under Section 111(m) of the Customs Act. The Original Authority gave an option to redeem the goods on payment of Redemption Fine of Rs. 75,000/-. He also imposed a penalty of Rs. 25,000/- under Section 112 of the Customs Act and allowed clearance of goods at the applicable rate. The respondent was highly aggrieved over the impugned order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate heading 84799090. B. Further, as stated in the Technical literature of the product, the impugned item is - 'not only considered to be an integrated computing work station but can be separated and used as a LCD display and control chassis. This provides a flexible and cost saving way for users to meet different kinds of application needs for industrial computing platform. 'Therefore, the machine can be said to perform specific functions other than data processing so as to classify it as in the heading more appropriate to their respective headings or falling in residual headings. Hence, item merits classification under CTH 8479 and cannot be held as an ADP machine. C. The learned Commissioner (Appeals) has also failed to take recog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Processing; (ii) The goods when imported are Data processing machines. The same will become a part of the friction welding machines only after importation and assembly into the machine. (iii) The case-law in the case of M/s. Shaf Broadcast Pvt. Ltd. v. CC (Import) - 2007 (207) E.L.T. 554 (Tri. Mumbai) squarely covers the issue. 5.1 It was pleaded that the order passed by the Commissioner (Appeals) is legal and proper in terms of Chapter Note 5(A) of Chapter 84 which reads as follows :- "5(A) : For the purposes of heading 8471, the expression "automatic data processing machines" means machine capable of : (i) storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding apparatus for communication in a wired or wireless network (such as a local or wide area network); (iii) loudspeakers and microphones; (iv) television cameras, digital cameras and video camera recorders; (v) monitors and projectors, not incorporation television reception apparatus. (E) Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings." 5.2 There is no objection that the imported goods are fulfilling the meaning of data processing machine as set out in chapter Note above. The applicability of Chapter Note 5(E) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (Tri.-Bang.), while the department claimed the classification of certain goods as parts of Electrical machines and apparatus having individual functions not specified elsewhere in this chapter, held that the goods are parts of data processing machine as it is more appropriate than the parts of electrical machines. The same rationale applies to this case also. 6. On a very careful consideration of the issue, we find that the items imported are actually 'Modular Workstations with 15" LCD'. The lower authorities have relied on Chapter Note 5(E) of Chapter 84. The Commissioner (Appeals), on a careful examination, has clearly stated that the Chapter Note 5(E) of Chapter 84 mainly deals with machines which .incorporates and works in conjunctio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng No. 84.71, The Commissioner has precisely done the same thing. The automatic data processing machines are presented separately. When the automatic data processing machines are presented together with the machine performing a specific function other than data processing machine and such machine with specific function is incorporating or working in conjunction with an automatic data processing machine, then the automatic data processing machine and the other machine having specific function, presented together should be classified under the Headings appropriate to the functions of that other machine. In the present case, it is an undisputed fact that the items in question are presented separately and the function of the said machines are a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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