TaxTMI 
TaxTMI 
2026 (4) TMI 689
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....e issue in the present appeal is classification of the product and the excise duty liability on the appellant. Alleging that the Appellant had developed, manufactured and cleared sophisticated hi-tech products such as time attendance and access control devices and handheld data collection devices without payment of duty under the brand name of "MiFaun" investigation was commenced and Adjudication Authority as per order dated 14.02.2019 held that the appellant is manufacturing such goods and confirmed the demand for the period from 2015-16 to 2016-17 with interest and also imposed penalty under various provisions of law. Aggrieved by said order, an appeal was filed before the Commissioner (Appeals) and Commissioner (Appeals) as per the impug....
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....e paid service tax on such activities by considering that such activities are falling under service. Learned Counsel further submits that the issue is not more res integra and relied on the following decisions:- i. Superintendent of Central Excise and others Vs. VAC Met Corpn. Pvt. Ltd. - 1985 (22) ELT 330 (SC) ii. Collector of Customs Vs. Bhor Industries - 1988 (35) ELT 346 (SC) iii. SPA Computers Ltd. Vs. Commissioner of C. Ex., Bangalore - 1999 (110) ELT 689 (Tribunal) iv. Gestetner (India) Ltd. Vs. Commissioner of Customs, Mumbai - 2006 (197) E.L.T 498 (Tri. - Mumbai.) v. Essae Teyaoka Ltd. Vs. Commissioner of Customs, Bangalore - 2001 (130) E.L.T 831 (Tri. - Bang.) vi. Xerox India L....
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.... assessee had specifically designed device for the above specific purposes. Hence the impugned goods will necessarily go out of the scope of CTH 8471 30 90. For an item to be classified under CETH 8471 30 90, it should be an automatic data processing machine, which is portable and weighing less than 10 kgs. I find that on analyzing the scope and performance of the impugned goods that the said equipment was unique and ideal for collection of data/time tracking. In view of the specialized and specific nature of the goods, the same cannot be classified merely as an automatic data processing machine or as computer peripherals. Reliance is placed on Note 5(E) of Chapter 84 which defines what goods would not fall under automatic data processing m....
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....he casing / covering was fastened to the PPCBs and an external sticker "MifaunTM" was affixed onto it. The products were packed and dispatched to the customers. Further the design and the specifications of the products were developed by the appellant and only some part of the products were assembled or manufactured by indigenous Units or the overseas companies as per the specification supplied by the appellant. As regards Tablet Biometric Devices, the products were not attached with fingerprint biometric sensor module and after import the appellant connected to the biometric sensor module, flashed the firmware, packed the product and then the same was dispatched to the customers. Thus, the activity carried out by the appellant amounts to ma....
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....gned for a specific functionality relating to data collection / access control device. The goods are clearly shown to have been designed for data capturing, computing, memory, time tracking, security and payroll management. As regards classification, Hon'ble Supreme Court in the matter of CC Vs. Bhor Industries., 1988(35) ELT 346(SC) held that handheld computer sold by the Appellant is therefore not understood in the market as "electrical machines and apparatus". The demand of excise duty under Central Excise Tariff Heading (CETH) 85437099 is therefore impermissible on all canons of statutory interpretation. As per the decision of the Hon'ble Tribunal in the case of SPA Computers Ltd Vs. CCE., reported in 1999(110) ELT689(T) it is held ....