TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 387
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....fit under Notification No. 024/2005 - Customs dated: 01.03.2005, whereas goods are required to be classifiable under Tariff heading 8543 attracting basic Customs duty @ 7.5%.. The consignment was examined 100% and the goods were found to be imprinted with marking as "Face Recognition Terminal". Further, it was alleged that, nowhere the declared description "Data Collection Terminal (Based on Face recognition terminal)" could be found as declared on the Bill of Entry. As per the findings of the examination report dated: 06.01.2022, the imported goods appeared to be mis-declared in terms of classification and description. Also 2 pieces of Face Go Face Recognition system without BIS, 21 pieces of old integrated circuit board and 1 pair of iron stand have been found, which were not declared in the Bill of Entry. The past consignments of these goods imported by the appellants were viewed as wrongly classified under CTH 84716970. The SCN was issued demanding the Customs Duty along with interest and proposing to impose penalty on the company, the CHA and the Director of the company. The SCN also demanded the differential duty along with interest for the 38 consignments imported earlier by....
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....two main repaired items found viz., Face Go Face Recognition system without BIS being wrong, the same is claimed classification UTH 84716090 and not UTH 8543. 4.3 The allegation made in the order, that the goods were intentionally mis-declared and mis-classified, is disputed as if an item is declared by any synonymous name, it cannot be treated that it is a mis-declaration. If a personal computer is declared as Laptop, the allegation of mis-declaration cannot be brought in. Similarly, instead of a lorry/truck if declared as a vehicle for transport of goods, does not tantamount to mis-declaration. Hence, if goods are declared as Data Collection Terminal (based on face recognition terminal) as is done in the present case instead of Access Controller Face Recognition System, found on the goods, cannot be held to be mis-declaration of the goods. 4.4 So far the classification of the main item of import is concerned, it is being submitted that, the Tariff Heading 8471 covers Machine having automatic data processing capacity and its unit and machine transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included. The same i....
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....wherein it was held that, "Computer system/Data processing machines are not electrical apparatus". 4.10 Moreover, in the case of M/S. Invixim Access Pvt Ltd Vs CC, Ahmedabad, on import of a similar "Bio-metric Access Control system" Hon'ble Tribunal held that, "the classification of such goods are classifiable UTH 8471 and the same cannot be classified UTH 8543", vide their Final order no. 10856/2024 dated: 09.04.2024, annexed as annexure-J to the appeal memorandum. 4.11 Further, such Finger print Reader/Scanner was held to be classifiable UTH 8471, in the case of STJ Electronics Pvt Ltd Vs CC, New Delhi, reported in [2016(337) E.L.T. 140 (Tri-Del.)]. Similar computerized systems meant for specific purposes are also held to be classifiable UTH 8471 by different Tribunals, Reference case laws; M/S. Karamchand Thapar & Bros. (C.S.) Ltd Vs. Collr. Of Customs, Bombay, reported in 1994 (71) E.L.T. 619 (Tribunal), M/S. Celetronix India Pvt Ltd Vs, CC, Chennai, reported in 2007 (211) E.L.T. 553 (Tri. - Chennai). 4.12 Accordingly, in conformity to the Tariff Notes and HSN Explanatory Notes, which is binding as per the Apex Court's Judgement in case of Woodcraft Products Ltd, r....
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....having failed to do so, no suppression can be alleged. Accordingly, the extended period has been invoked against 27 past cleared Bills of Entry, which is hit by limitation as per decision of different higher Judiciary flora, dealt in detailed in reply to the show cause notice. 4.15 In respect of the confirmed demand against FACE IT, the Ld Consultant also takes the time bar argument. He submits that the out of past 48 consignments which are part of the present proceedings, the confirmed demand against about 27 consignments is required to be set aside even on account of time bar. He submits that in these cases, the extended period provisions have been invoked, which is erroneous. The consignments were cleared in the normal course, without any objection being raised on the classification adopted and the exemption claimed by the importer. Even in case of self-assessed Bills of Entry, the Dept was required to file an appeal before the Commissioner (Appeal), as has been held by the Supreme Court in the case of ITC Ltd., which was not done this case. Therefore, he prays that the part of the confirmed demand may be set aside on account of time bar also. 4.16 Since the issue is that ....
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.... and the Show Cause Notice has been issued demanding the differential duty on 49 consignments [One live consignment + 48 past consignments] in case of FACE IT and 7 consignments in case of Furtuna Impex. 9 It would be important to go through the Tariff headings 84 and 85. The relevant portions are extracted below: CTH and Sub-headings Description of item 8471 Automatic Data Processing Machines and units thereof; Magnetic or Optical Readers, Machines for transcribing Data on to Data Media in coded form and machines for processing such Data, not elsewhere specified or included. 8471 60 90 Finger print reader/scanner other than finger print reader/scanner for use in manufacturing of cellular mobile phones Chapter Note 6(A) to Chapter 84 of the Customs Tariff : for the purpose of heading 8471, the expression "Automatic Data Processing Machines" means, machine capable of: i) Storing the processing program or programs and at least the data immediately necessary for the execution of the programs; ii) Being freely programmed in accordance with the requirements of the user; iii) Performing arithmetical computation specified by the use....
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....ucers and parts and accessories of such articles ITC HS Code Classification. 16. As per the functions of the device, discussed above, we do not find that the same can be classified as Electrical Machinery. The Access Controller Face Recognition System is not like any Television, which is not capable of storing the data, having RAM, or any process or Linux Operating System. 17. Therefore, as per our detailed discussions the following conclusions emerge: (a) The device is clearly Automatic Data Processing machinery falling under CTH 8471. (b) The device is definitely not any Electrical Machinery or Equipment or part thereof 18. Therefore, we reject the Revenue's claim that the product is classifiable under 8543 and hold that the machine is classifiable under 8471. 19. Now we take up the case laws cited by the appellant. 2016 (337) E.L.T. 140 (Tri. - Del.) STJ ELECTRONICS PVT. LTD. Versus CC (I&G), NEW DELHI Appeal is filed against order-in-appeal dated 16-11-2009 in terms of which the impugned goods namely MSO CBM (EMBALLE PAR 40) FINGER PRINT READER - SCANNER were held to be classifiable under Customs Tariff Heading 8543, as against the c....
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....ss and exit is controlled automatically. The said device is connected to central processing unit and captures the data in the form of scan image in digital format. The said scan image is there after used by the system to validate/ record entry or exit. In this background we do not find any merit in the claim of revenue goods are not classified under heading 8471. Once goods are classifiable under heading 8471 the same cannot be classified under Entry 8543. 22. In the above case, the Tribunal relied on the decision of the Delhi Bench in STJ and has come its findings. We find that both the above decisions are squarely applicable to the facts of the present case. 23. In respect of excess items found in the live consignment imported by FACE IT, the appellant has satisfactorily provided the documentary evidence to the effect that these goods were imported earlier, had been sent for repairs, and subsequently were packed in the live consignment by the overseas exporter. Therefore, we do not find any substance in the allegation of the Revenue on this issue. 24. We have held that the goods are classifiable under CTH 8471 only and not under CTH 8543. Hence, the confiscation and cons....
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....thentication. (ii) Being freely programmed in accordance with the requirements of the user |The device has the fixed set of programs and it can be changed by installin firmware as per the requirement. The device can be configured with respe the following :- a) Auto face detect b) Live face detection c) Face detection with/without mask. d) Face temperature detection. e) Temperature in Celsius/ Fahrenheit. f) Date/time setting g) Recognition with combinations of card, face and pin details. h) QR code Reader The i) Attachment with door lock system j) Attachment with thermal printer Apart from the above mentioned features, it can be configured for other options Refer Figure 6 carried out by STQC IT Service, ERTL (East), observations: Being freely programmed in accordance with the requirements of the user |The device has the fixed set of programs and it can be changed by installin firmware as per the requirement. The device can be configured with respe the following :- Apart from the above mentioned features, it can be configured for other options Refer Figure 6 carried out by STQC IT Service, ERTL (East), Disclaimer: The c....
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.... modify their execution, by logical decision during the processing run |configured processing program gets automatically executed without-any human The machine has operational functions which can be configured. Once it is intervention 4-6 Refer Figure 2, 3 After capturing the face or card data, it is being transcribed into base 64 code. IT Service, ERTL (East), Kolkata It process data in coded form. A code consists of a finite set of characters (binary code, standard | six bit ISO code, Base 64 etc.) compliance assessment was carried Disclaimer: The compliance assessment was carried out by STQC IT Service, ERTL (East), Kolkata from 17th to 28th July 2023, This data is confidential and is between ERTL (East), Kolkata and FACE IT Systems LLP and needs to be shared in full, if needed . This report is only related to the specific make model and serial no. of the product as mentioned in the report. Page 6 | 23 SI. No. Requirement Observation (viii) The data input is automatic, by direct reading of original Face/documents, etc. There are also arrangements for manual input by means of keyboards or the input may be furnished directly by certain ins....
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....atic data processing machines must have a main storage capability which is directly accessible for the execution of a particular program and which has a capacity to store those compliance assessment was carried Disclaimer: The compliance assessment was carried out by STQC IT Service, ERTL (East), Kolkata from 17th to 28th July 2023, This data is confidential and is between ERTL (East), Kolkata and FACE IT Systems LLP and needs to be shared in full, if needed . This report is only related to the specific make model and serial no. of the product as mentioned in the report. Page 7 | 23 SI. No: Requirement Observation parts of the processing and translating programs (known as OS & Firmware) and the data immediately necessary for the current processing run. processing programs which is required for the execution of particular program, Facial/card data is also stored in the system memory in base 64 encoded formats. Refer Figure.4 (xii) It a is comprised in the same housing, the central processing unit, an input unit (e.g., a keyboard or scanner) and an output unit (e.g., visual display unit), in form of a "system" with interconnections made by wired or wireless....
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....ture details Device Architecture It contains the following CHIP 1. SK Hynix- H5TQ4G63EFR- RDC 4 GB DDR3 SDRAM 2. EASY TECH-SV810- The SV810 Al SoC integrates a self-developed NPU with up to 1.2 TOPS Al computing power, which can be applied to face recognition entrance and exit gates, community access control, office attendance and other scenarios. B 3. SEC 210- KLM8G1GETF- Read-write memory (Ok? ) Disclaimer: The compliance assessment was carried out by STQC IT Service, ERTL (East), Kolkata from 17:" to 28th July 2023. This data is confidential and is between ERTL (East), Kolkata and FACE IT Systems LLP and needs to be shared in full. if needed . This report is only related to the specific make model and serial no. of the product as mentioned in the report. H-10 Page 10 | 23 Document 2 Annexure- G 248 JADAVPUR UNIVERSITY 2ND CAMPUS, SALT LAKE BLOCK-LB, PLOT NO. 8, SECTOR III CALCUTTA - 700 098 INDIA Phone : 23355813 Fax : 91-(033)-2335 7254 FACULTY Y OF ENGINEERING AND TECHNOLOGY DEPARTMENT OF POWER ENGINEERING Nect: Detailed technical report on the component level organization and functionalities of the Automatic Facial Data process....
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....e device info display and though an email from the manufacturer. Embedded Linux is a commercially available product and allows system developers to develop products such as the VF1000 taking care of both the kernel, SoC and Board Level functional requirements. This is shown in Annexure IV. Conclusion: a. The system presented represents a Micro-computer based system built around a dual-core CPU integrated with other hardware accelerators e.g an NPU(for accelerating numerical computation required for Al algorithms), ISP(for image processing) along with a Solid State secondary memory. b. The Input/output (I/O) interfaces include a touch-screen display along with a built in touch keyboard (input interface )as well as a LAN, USB and WiFi connectivity and provision for optional cellular data network connectivity (to be enabled with additional modules), all enclosed in a single housing as a unit. c. The device also incorporates a built-in camera that allows automatic capture of image data, extraction of live facial features using Artificial Intelligence techniques, processing of this data, transcribed in coded form and subsequent matching with a database and finally generat....