Classification of data-processing cards under Heading 8471 upheld where the cards functioned as constituent units of ADP machines.

Gist Cards and Transputer Cards were treated as constituent units of automatic data processing machines because they were connected to the central processing unit and capable of accepting, processing and delivering data. The chapter notes to Chapter 84 supported classification under Heading 8471 for such data-processing units with independent functionality, and the revenue failed to show that the cards had no separate function. On that basis, the finding that the items were classifiable under Heading 84.71, rather than as parts under Heading 8473, was upheld and the revenue's challenge failed.

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Issues: Whether Gist Cards and Transputer Cards were correctly classifiable under Heading 8471 of the Central Excise Tariff Act, 1985, or whether they were liable to be classified under Heading 8473 as parts without independent function.

Analysis: The revenue did not place material on record to show that the cards had no independent function or were incapable of functioning separately. The cards were described as units of automatic data processing machines, with micro-processors connected to the central processing unit and capable of accepting, processing, and delivering data. The chapter notes to Chapter 84 supported classification of such cards under Heading 8471 when they were connected to the central processing unit and capable of data handling. The finding of the Commissioner (Appeals) that the items were constituent units of an automatic data processing system and appropriately classifiable under Heading 84.71 was not displaced by the revenue.

Conclusion: The cards were rightly classified under Heading 8471 and not under Heading 8473; the revenue's challenge failed.

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