1997 (9) TMI 319 - AT - Central Excise

Summary

Issues: Classification of goods under different tariff headings; Interpretation of technical specifications for classification; Relevance of notifications issued by the Board.

In this judgment by the Appellate Tribunal CEGAT, MADRAS, the issue at hand pertains to the classification of goods labeled as SPA remote. The lower appellate authority initially noted the appellant's uncertainty regarding the correct classification of the product, as they had proposed different headings in their submissions. The technical description provided by the appellant indicated that the SPA Remote is a Micro-processor based Remote Terminal Unit used for Data Acquisition and Process Control Applications, with capabilities such as scanning process inputs and interfacing with external systems. The tribunal analyzed the technical write-up and concluded that the product falls under Note 5(b) to Chapter 84, as it is connectable to a computer and designed to accept and deliver signals. Consequently, the correct classification was determined to be under sub-heading 8471.00, rejecting the appellant's plea for classification under Chapter Heading 9026 for measuring instruments, as the product did not perform those functions.

The consultant for the appellant argued that a notification had been issued by the Board classifying similar programmable controllers under different tariff headings, initially under 85.37 and later under 90.32. However, the tribunal found that no literature on the PL controllers was provided to establish conformity with the specifications outlined in the Trade Notice. Given that the product in question was utilized in conjunction with a computer for control purposes, it was deemed to align with Note 5(b) of Chapter 84, pertaining to data processing machines. The tribunal emphasized that machines working in conjunction with automatic data processing machines and performing specific functions are classified based on their functions or residual headings, which supported the lower authority's decision.

Ultimately, the tribunal upheld the lower appellate authority's reasoning, which relied on the technical opinion presented in the case. The judgment concluded that the appellant's plea lacked merit, leading to the dismissal of the appeal. The detailed technical analysis and application of classification principles, along with the consideration of relevant notifications and specifications, formed the basis for the tribunal's decision in this classification dispute.