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TMI Blog2023 (12) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... less networks; other apparatus or for the transmission or reception of voice, Images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of Heading 8443, 8525, 8527 or 8528 - It is a settled fact that the principles of classification endorses that any classification should be based on the description and function of an item as it is imported and not based on its end-use as held by the Supreme Court in number of cases. The HSN Explanatory Notes to Chapter Heading 8537 states that this heading covers programmable controllers which are digital apparatus using a programmable memory for the storage of instructions for implem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on printed circuit board and as per the Technical Write-up, the circuit boards were wireless CPU-a powerful programmable processor. Based on the above description and with reference to HSN Explanatory Notes, the items were classified under Chapter Heading 8537 1000 by the Original Authority as against the classification claimed by the respondent under Chapter Heading 8517 6230. On an appeal before the Commissioner (A), the Commissioner (Appeals) based on the catalogue produced before him found that the wireless CPU wavecom includes ARM microprocessors that can process data, listen to more than 50 peripheral devices, address complex display driver interfaces, etc; thus describes the modem to be a powerful programmable processor which can a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both sides. There is no dispute that the items imported are a programmable processor mounted on a printed circuit board. The Commissioner (Appeals) s classification under Chapter Heading 8517 is misplaced in as much as this Chapter includes Telephone sets, smartphones and other telephones for cellular networks or for other wireless networks; other apparatus or for the transmission or reception of voice, Images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of Heading 8443, 8525, 8527 or 8528. He further observed that based on the flowchart produced by the respondent, the imported item is a component to be used in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of Heading 8443, 8525, 8527 or 8528 8537 : Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of Heading 8535 or 8536, for electric control or the distribution of 8537 10 00 electricity, including those incorporating instruments or apparatus Of chapter 90, and numerical control apparatus, other than switching apparatus of Heading 8517. 6. The HSN Explanatory Notes to Chapter Heading 8537 states that this heading covers programmable controllers which are digital apparatus using a programmable memory for the storage of instructions for implementing specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from trade pointing out that programmable logic controller and Programmable process controllers such as process control equipment/distributed control system are two different types of controls classifiable under different headings of Central Excise Tariff i.e., heading 85.37 and heading 90.32 respectively. The following specific differences have been pointed out between two types of controllers:- Programmable Logic Controller Programmable Process Controller 1. These are controlling various types of machines. These are for controlling various types of processes 2. Operation depends on set of pre-determined operations Operati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atic regulating or controlling instruments and apparatus under the heading No.90.32:- They may be considered as industrial process control systems satisfying criteria mentioned in No.90.32. These are primarily used for controlling/maintaining the flow, level pressure or other variables of liquids or gases, or for automatically controlling temperature of a process (may be refinery, steel, chemical industry) at the present level. They can perform functions both sequence logic and different control strategies like Proportional - Integral - Differential (PID) control and other forms of control. 4. It is observed that opinion of the Department to Electronics is also in conformity with the Explanatory Notes of HSN. 5. Now, therefore, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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