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2015 (3) TMI 430 - KARNATAKA HIGH COURTClassification of goods - Whether portable hand held electronic ticketing machine is an IT produce and falls under heading and sub-heading No.8471 to be eligible for tax at 4% or under sub-heading No 8470 attracted tax rate at 12.5% - Held that:- Electronic ticketing machine is an IT product. - Schedule-III Item No.53 namely IT products including telecommunication equipments as would be notified are taxed at 4% and therefore, the assessee is entitled to the said benefit. - where a commodity is described against any heading or sub-heading, if the aforesaid description is different in any manner from the corresponding description in the Central Excise Tariff Act, 1985, then only those commodities described as aforesaid will be covered by the scope of this notification and other commodities though covered by the corresponding description in the Central Excise Tariff will not be covered by the scope of this notification. The KSRTC invited tender for supply of ticketing machines with technical specifications detailing the hardware and software components. They called the said goods as portable handheld ticketing machine. As per Annexure-A the assessee is in the business of sale of ticketing machines. The Annexure-"A" which is issued by them reads that it is versatile bus ticketing machines from the pioneers of ticketing machines in India. Introduces compact and rugged hand held bus ticketing machines. Over 10,000/- machines in use in various State Road Transport Corporations including KSRTC, NEKRTC, NWKRTC AND BMTC in Karnataka and KSRTC, Kerala apart from various private organizations in India and Abroad. In the hind portions, they have given the specifications of the hardware. Therefore, in the light of the judgment of the Supreme Court [1990 (11) TMI 142 - SUPREME COURT OF INDIA], how the goods are understood in the commercial sense has to be taken into consideration for the purpose of classification of the goods and the scientific and technical meaning has no place. Therefore, when the goods involved is a portable handheld ticketing machine that is how the assessee has described the machine and that is how the customers have also understood it and in the Central Excise Tariff Act this ticket issuing machines are expressly included in Entry 8470, by any stretch of imagination, the Court cannot hold that it falls under 8471 especially when it specifically states that "not elsewhere specified or included". The notification issued specified 8471 does not include this ticketing machine. This is precisely what the authorities have concurrently held. Therefore, we do not see any error in the orders passed by any of the authorities. Therefore, the finding is just and proper and in accordance with law. - Decided against assessee.
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