Exemption for static converters under customs notification confined to specified data-processing and telecom uses, excluding broader UPS claims.

Notification No. 25/2005-Cus., serial number 4, was construed as confining exemption to static converters meant for automatic data processing machines and units thereof, and to telecommunication apparatus other than converters for cellular mobile phones. The wording was treated as exhaustive, so no additional limitation or expansion such as intended use, actual use, sole use or built-in use could be implied. Relying on the Information Technology Agreement scheme, the text was read to exclude machines performing other specific functions or working in conjunction with data-processing equipment unless expressly covered. On that basis, UPS systems claimed for healthcare, infrastructure and similar non-specified uses were held outside the exemption.

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Issues: Whether the proposed import of uninterrupted power supply systems classifiable under heading 85044090 was entitled to the benefit of serial number 4 of Notification No. 25/2005-Cus. dated 01.03.2005 when the goods were stated to be capable of use in automatic data processing machines, telecommunication apparatus, healthcare equipment and other machines.

Analysis: The exemption in serial number 4 was held to extend only to static converters meant for automatic data processing machines and units thereof, and telecommunication apparatus other than static converters for cellular mobile phones. The wording of the notification was treated as sufficient to confine the benefit to those specified end uses, and no additional words such as intended, actual, solely, principally or built-in could be read into it. The authority also relied on the scheme underlying the Information Technology Agreement, under which machines performing specific functions other than data processing, or incorporating or working in conjunction with an automatic data processing machine, are not covered unless otherwise specified. On that basis, the broad claim to exemption for UPS used in healthcare, infrastructure and similar sectors was rejected.

Conclusion: The benefit of serial number 4 of Notification No. 25/2005-Cus. dated 01.03.2005 was available only where the static converters were meant for automatic data processing machines and units thereof, or for telecommunication apparatus other than cellular mobile phone converters. The wider claim for exemption in respect of UPS meant for other machines was not accepted.

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