1996 (11) TMI 199 - AT - Customs

Summary

Issues: Classification of imported disc packs and disc drive under Notification No. 40/82-Cus for concessional duty rate.

The judgment by the Appellate Tribunal CEGAT, New Delhi involved an appeal against an Order-in-Appeal passed by the Collector (Appeals), Madras, concerning the classification of imported disc packs and disc drive under C.T.H. 8451.55 (2) for concessional duty rate under Notification No. 40/82-Cus. The appellants claimed that the disc drive imported by them is a machine for transcribing data into data media in coded form and thus eligible for exemption under the said notification. The Revenue contested the eligibility of the disc pack for the same exemption, arguing that it is not capable of transcribing data. The main issue for determination was whether both the disc drive and disc pack could be considered as machines for transcribing data onto data media in coded form under the relevant notification.

The appellants argued that the disc drive they imported functions as a machine for transcribing data onto data media in coded form as it stores and converts data into magnetic form for permanent storage, which can be converted back into electrical data when needed. They supported their argument with technical literature describing the disc drive's function of writing and reading data from disk surfaces using read/write heads. The Tribunal noted that the disc drive indeed performs the essential function of transcribing data onto data media in a coded form, as evidenced by the technical description and previous Tribunal decisions supporting similar claims.

Regarding the disc pack, both the appellants and the Revenue agreed that it, by itself, does not qualify as a machine for transcribing data. The appellants did not press their claim for the disc pack's exemption under Notification No. 40/82-Cus. Consequently, the Tribunal upheld the decision to deny exemption to the disc packs but set aside the order concerning disc drives, ruling that disc drives are eligible for exemption under the notification. The judgment relied on the technical functionality of the disc drive and previous Tribunal decisions to support the conclusion that it falls within the category of machinery for transcribing data onto data media in coded form.

In conclusion, the Appellate Tribunal CEGAT, New Delhi, in the case at hand, resolved the issue of classification of imported disc packs and disc drive under Notification No. 40/82-Cus for concessional duty rate. The judgment clarified that while the disc pack did not qualify as a machine for transcribing data, the disc drive met the criteria for exemption under the notification based on its function of transcribing data onto data media in a coded form. The decision was supported by technical descriptions and previous Tribunal rulings on similar cases.