2006(11)LCX0049
IN THE CESTAT, WEST ZONAL BENCH, MUMBAI [COURT NO. II]
Ms. Archana Wadhwa, Member (J) and Shri K.K. Agarwal, Member (T)
Blue Star Ltd.
Versus
Commissioner of Customs, Mumbai
Final Order No. A/1311/2006-WZB/C-II/(C.S.T.B.), dated 15-11-2006 in Appeal No. C/105/97
Advocated By -
Shri R. Ravindran, Advocate, for the Appellant.
Shri Umashankar, SDR, for the Respondent.
[Order per: Archana Wadhwa, Member (J)]. -
The dispute in the present appeal relates to the correct classification of the Data Processing Unit imported by the appellants along with the differential scanning calorimeter. According to the appellants, the data processing unit would get classified along with the calorimeter under Customs Tariff Heading 9027.90. On the other hand, the revenue has classified the said data processing unit under Heading 84.71.
2. As per the appellants, the Disk station SSC 5200H has a multi tasking operating system (OS) which is dedicated for thermal analysis and so it can not be used for General purpose data processing. They also stated that the disk station also controls the Thermal analysis module i.e., DSC 220 and so, it is an integral part of the Thermal Analysis Module DSC 220 and has no independent use.
3. As against the above, the original adjudicating authority has observed as under :-
"I have gone through the facts of the case, from the catalogue produced by the party, the disk station SSC 5200H consists of (1) RAM (2) Hard Sisk (3) File Directory (4) Motorola 32 bit 68030 processing CPU, along with CRT and key board by which it is controlled. This Disk station is connected to Analysis Modules such as DSC (Differential Scanning Calorimeter), TG/DTA (Thermo Gravimetry/Differential Thermal Analyser), TMA (Thermo Mechanical Analyser) etc. The disk station has a capacity to execute 50 temperature programs (10 steps each). The disk station can take not only simultaneous measurements of three modules but also implements data analysis and plotting during measurement without any restriction.
The thermal analysis module DSC 220, which is imported, has an inbuilt Central Processing Unit (CPU) which interacts with Disk Station. This DSC Module CPU processes the DSC Signals received from furnace and controls the heater power accordingly as desired.
Thus the Sisk Station :-
(i) Stores the data as well as programmes in its storage space, RAM & Hard Disk.
(ii) It can be programmed depending upon its use in Thermal Analysis. As stated above it handle various thermal analysis modules like DSC, TG/DTA, TMA, TMA/SS.
(iii) It performs arithmetical computations as specified and does the analysis of data.
(iv) Executes without human intervention, a processing program which require them to modify their execution, by logical decision during the processing run.
The Disk Station SSC 5200H along with Monitor (CRT) and keyboard is an automatic data processing machine as per Chapter Note 5 (A) (a). It is presented separately along with the Thermal Analysis Module DSC 220 and hence it will be classified separately on merits in heading 84.71 as per HSN Note in page 1139".
4. The Ld. Advocate appearing for the appellants does not dispute that the goods under consideration is data processing unit but submits that in accordance with Section 4 of Section XVI where a machine consists of individual component intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the Heading appropriate to that function. As against the above, revenue has relied upon vide 5(A)(a) of Chapter 84 defining the expression automatic data processing machine.
5. According to the said Chapter Note automatic data processing machine means:
"Digital machines, capable of (1) storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme (2) being freely programmed in accordance with the requirements of the user (3) performing arithmetical computations specified by the user and (4) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run."
6. The appellants have not disputed that the Disk Station imported along with calorimeter is data processing machine, in terms of the said definition. However, their plea is that inasmuch as the same has been programmed to work in conjunction with the calor'meter, the same would get classified under Chapter 90, where calorimeter falls.
7. We do not find any merit in the above plea of the appellants. Admittedly, Heading 84.71 is specifically covering automatic data processing machine. The Chapter Note 5 (B), explanation clarifies that the said heading does not cover machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function. Such machines are classified in the headings appropriate to their respective functions or, failing that, in residual headings. The appellants reliance upon the above explanation is not appropriate inasmuch as the same is in relation to the machines working in conjunction with an automatic data processing machine and not for the automatic data processing machines. Similarly, Note 4 will come into operation where the imported goods consists of combination of machines intended to contribute to a clearly defined function. It is in that scenario, the goods would be classified in the Heading appropriate to that function, even if individually such components may fall under Chapter 84 or Chapter 88. Admittedly, the goods imported by the appellants is not a combination of individual machine. Scanning calorimeter is an independent item and the data processing unit is an independent machine. Merely, because such data processing unit is programmed to work with the calorimeter imported by the appellants, it will not shift the classification from Chapter 84 to Chapter 90.
8. In view of the above, we find no merits in the appellant's appeal and reject the same.
(Pronounced in Court)
Equivalent 2007 (208) ELT 0106 (Tri. - Mumbai)
Equivalent 2007 (079) RLT 0076 (CESTAT-Mum.)
Equivalent 2007 (116) ECC 0081
Equivalent 2007 (142) ECR 0081 (Tri.-Mumbai)