Customs classification under 8471 upheld, preserving duty exemption for imported goods treated as automatic data processing machines.

Imported goods were held classifiable under Customs Tariff Item 8471 4190 as automatic data processing machines, with Chapter Note 5(A) to Chapter 84 supporting the classification rather than the Revenue's proposed treatment under heading 9504 for toys. The Tribunal relied on an earlier decision involving the same respondent and similar goods, and found no basis to depart from that view. As the 8471 classification was sustained, the claimed benefit of Basic Customs Duty exemption under Notification No. 24/2005-Cus. was also maintained.

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Issues: Whether the imported goods were correctly classifiable under Customs Tariff Item 8471 4190 as automatic data processing machines, and whether the benefit of Basic Customs Duty exemption under Notification No. 24/2005-Cus. dated 01.03.2005 was available, or whether the goods were classifiable under Customs Tariff Item 9504 9090.

Analysis: The dispute turned on the proper classification of the imported goods in light of Chapter Note 5(A) to Chapter 84 of the Customs Tariff Act, 1975 and the rival stand that the goods functioned as toys for children. The Tribunal noted that an earlier decision involving the same respondent and similar goods had already upheld classification under Chapter 84 and rejected the departmental shift to heading 9503/9504. It held that no different view could be taken on the same issue, and that the classification adopted by the respondent remained sustainable. Consequent to that classification, the claimed customs duty exemption also survived.

Conclusion: The classification under heading 8471 was upheld and the Revenue's challenge failed.

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