TaxTMI 
TaxTMI 
2002 (1) TMI 753
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....ch Mode Power Supply (SMPS) and it is entirely different from UPS. His finding is that the UPS is required to be classified under sub-heading 8504.40 while the item in question is required to be classified under sub-heading 84.71 as parts of computer. He has also noted the judgment of the Tribunal in the case of M/s. Wipro Infotech Ltd. v. CCE reported in 2001 (129) E.L.T. 517 wherein it has been held that SMPS specifically designed for and used exclusively in computers to convert AC current to DC current is covered under Chapter Note 5(b) of Chapter 84 of the CET, 1985 and the Tribunal overruled the classification adopted under the Heading 85.04. In the grounds of appeal paras 1 to 6, the Revenue has stated as follows : "1. The abo....
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....hines performing a specific function other than data processing and incorporating or working in conjunction with an automatic data processing machine are to be classified in the heading appropriate to their respective functions or failing that in residual heading". Here specific function of SMPS is to convert the AC power supply as input to desired DC power supply as output which is other than the function of Data processing as done by the Computer. Hence it has to be classified in the heading appropriate to their respective functions or failing that in the residual headings. 5. Further the conditions mentioned at Note (5)(B) of Chapter 84 are also not satisfied by the imported item i.e. SMPS because SMPS is not accepting or deliver....
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....cally designed for and used exclusively in computers to convert AC current to DC current and also it satisfies the requirement as laid down in Note 5(B) of Chapter 84 which is reproduced below : "(B) Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system if it meets all of the following conditions : (a) It is of a kind solely or principally used in an automatic data processing system ; (b) It is connectable to the central processing unit either directly or through one or more other units, and (c) &nb....
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....carrying on some function of power supply in computer or it is SMPS which is specifically designed for and used exclusively in computer satisfies Note 5(B) of Chapter 84. The Revenue has contended that power supply units for machines fall under heading 84.71 and in terms of HSN Note at page 1450 the item is required to be classified under heading 85.04. However, as per the literature now produced and given by the technical person of HCL Ltd., who is the importer, the item is not merely Power Supply Unit for machine under heading 84.71, but it is something more inasmuch as it is SMPS specifically designed for and used exclusively in computers inasmuch as it gives signals to the computer and the computer accepts the signals and work on the si....