2016 (2) TMI 141

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....cation claimed by the appellant under CTH 8471 on the ground that the goods were optical readers and hence clearly covered under CTH 8471. 2. The appellant has contended that:  (i) As per the manufacturers pamphlet the goods are described as High-performance optical sensor which works on the proprietary optical technology. It reads the finger prints and transmit it through the signals to the computer or the motherboard for matching with fingerprints already stored in the computer / motherboard and the adjudicating authority admits that the impugned goods are optical reader that read finger print pattern.  (ii) The impugned goods are without housing and cable and are fitted in a housing and with cable which connects the m....

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....ot specified or included elsewhere in this Chapter". 5. From the pamphlets relating to the impugned goods, it is evident that the impugned goods are fingerprint reader which work on optical technology and involve flat optical sensor for compact design. Its technical specifications indicate that it comprises thin optical sensor. CTH 8471 specifically covers magnetic or optical readers. Chapter note 5(C), (D) and (E) to Chapter 84 read as under:  "(C) Subject to paragraphs (D) and (E) a unit is to be regarded as being part of an automatic data processing system if it meets all of the following conditions:  (i) it is of a kind solely or principally used in an automatic data processing system;  (ii) ....

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.... headings". It is clear that the impugned item is of a kind solely or principally used in an automatic data processing system, it is connectable to the central processing unit and is able to accept or deliver data in a form (codes or signals) which can be used by the system. The exclusions contained in chapter note 5(D) do not cover the impugned item and it is not the case of Revenue either that it does. Revenue referred to Chapter note 5(E) quoted above. We find that chapter note 5(E) refers to machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing. In the present case the machine essentially performs data processing function inasmuch as it....