TaxTMI 
TaxTMI 
2008 (9) TMI 222
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....arned Chartered Accountant, for the Respondent. 3. We heard both sides. 4. The issue involved is the correct classification of "Modular Work station with 15" LCD and 9 expansion slots" imported by the respondent. They claimed classification under CH 84715000. The Department felt that the classification should be under Heading 84799090. Consequently, proceedings were initiated against the respondent. The goods were held liable for confiscation under Section 111(m) of the Customs Act. The Original Authority gave an option to redeem the goods on payment of Redemption Fine of Rs. 75,000/-. He also imposed a penalty of Rs. 25,000/- under Section 112 of the Customs Act and allowed clearance of goods at the applicable rate. The respondent wa....
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.... the same merits classification under more appropriate heading 84799090. B. Further, as stated in the Technical literature of the product, the impugned item is - 'not only considered to be an integrated computing work station but can be separated and used as a LCD display and control chassis. This provides a flexible and cost saving way for users to meet different kinds of application needs for industrial computing platform. 'Therefore, the machine can be said to perform specific functions other than data processing so as to classify it as in the heading more appropriate to their respective headings or falling in residual headings. Hence, item merits classification under CTH 8479 and cannot be held as an ADP machine. C. The learned Co....
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....llowing reasons :- (i) The Modular Workstation undertakes Data Processing; (ii) The goods when imported are Data processing machines. The same will become a part of the friction welding machines only after importation and assembly into the machine. (iii) The case-law in the case of M/s. Shaf Broadcast Pvt. Ltd. v. CC (Import) - 2007 (207) E.L.T. 554 (Tri. Mumbai) squarely covers the issue. 5.1 It was pleaded that the order passed by the Commissioner (Appeals) is legal and proper in terms of Chapter Note 5(A) of Chapter 84 which reads as follows :- "5(A) : For the purposes of heading 8471, the expression "automatic data processing machines" means machine capable of : (i) storing the processing programme or programmes and at....
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....ot combined; (ii) apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network); (iii) loudspeakers and microphones; (iv) television cameras, digital cameras and video camera recorders; (v) monitors and projectors, not incorporation television reception apparatus. (E) Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings." 5.2 There is no objection that the imported goods are fulfilling the....
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....supra), the items were classified under 8471. (iv) In the case of Wipro Ltd. v. CCE, Bangalore - 2007 (210) E.L.T. 102 (Tri.-Bang.), while the department claimed the classification of certain goods as parts of Electrical machines and apparatus having individual functions not specified elsewhere in this chapter, held that the goods are parts of data processing machine as it is more appropriate than the parts of electrical machines. The same rationale applies to this case also. 6. On a very careful consideration of the issue, we find that the items imported are actually 'Modular Workstations with 15" LCD'. The lower authorities have relied on Chapter Note 5(E) of Chapter 84. The Commissioner (Appeals), on a careful examination, has clea....