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TMI Blog2023 (10) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... to a central server for further processing like marking the attendance, preparation of payroll or for other purposes. These facts are not in dispute. Based on the General Rules of Interpretation and the Chapter Notes, the item needs to be classified in the heading akin to it or where the specific description is provided. In this case, the data collection device imported by the respondent is nothing but a card reader working in conjunction with the server - Since the specific function of the imported item is to mark attendance or to take note of the persons of the employees for the purpose of attendance or payroll or leave, they cannot be classified under Chapter 84 as it excludes from this Chapter as per the Chapter Note 5(e). In the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and integrated magnetic reader. When an employee swipes his card in the card reader slot or enters his pin through the alphanumeric keys, the machine identifies the employee and marks his attendance and exit. The data so collected is rooted to a central server which is further processed. Based on the above description and referring to Chapter Note 5(E) to Chapter 84, those in authority states that the data collection device functions like a badge reader which works in conjunction with a central server and such proximity such badge readers are rightly classifiable under chapter heading 8543 7099. 2. The appellate authority in the impugned order after analysing the Chapter Headings of 8543 and 8471 states that 8543 is meant for Electrica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he card is swiped and pin is entered but does not process the data, it cannot be construed as an automatic data processing machine and hence, are rightly classifiable under chapter 8543. The authorised representative on behalf of the Revenue reiterating the grounds of appeal submits that the device itself is not able to perform any data processing operations; it only acts upon the program run by the central server; it has the functionality and the characteristic of proximity card reader and hence, are rightly classifiable under Chapter Heading 8543. He further submitted that there was an error in the impugned order classifying the product under a classification which was not pleaded before the original authority and prays for upholding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r transactions. The machine also support connection of customer supplied external readers, including contact less MIFARE and iCLASS smart card readers. -It has integrated Bar code reader, Integrated Proximity reader and integrated Magnetic reader. -The employ may swipe his card in the card reader slot or enter his PIN through the alphanumeric keys on the machine. -upon swiping or entering the pin the machine identifies the employee and mark his attendance and exit. -the data so collected will be routed to the central server through Ethernet cable connection/modem. -the central server process the data of the employees for further processing and data is archived there. 7. As seen from the above and as noted by the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove. 9. In the case of Commissioner of Customs, Bangalore vs. Scatia: 2019 (370) ELT 703 (Tri.-Bang.), a similar product viz., fingerprint scanner was classified under Chapter Heading 8543 7099 as per the observations made by the Tribunal at para 5.1, wherein it has held that: 5.1 The Department contended that CTH 8543 70 99 is more applicable due to the fact that the item imported basically operates on electrical/electric technology. We find that the Head 8543 covers electrical machines and apparatus having individual functions not specified or included elsewhere in the chapter. Therefore, the classification of the Finger Print Reader would be more appropriate under this heading. We also accept the Department s contention that whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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