TMI Blog1991 (2) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... he classification of the 4 Nos. of VDI Off-line keyboards which had been imported in addition to the keyboards already fitted with the photo composing machines. The Assistant Collector had examined the issue of classification of 5004 (40K) VDI offline keyboards. The respondent had claimed classification under Heading 84.34 on the ground that these are component parts of photo composing machines. The Assistant Collector had observed from the catalogue that the machines consist of input unit, data storage and playback unit and these were imported in assembled form as one unit and the machine, though designed for use with the photo composing machine, would also be found to be used for input from other sources such as other word processors computers and wire-services. It was further observed by the Assistant Collector that in terms of the explanatory note at page 1346 of the CCCN under Heading 84.53, the essential requirements of a data processing unit were input unit, central processor and output unit and the above requirements were satisfied in this case. He had held that the machine in question was appropriately assessable under Heading 84.51/55(2) of the CTA 1975. The duty chargeab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... data processing machines are assessable under Heading 84.51/55(2), whereas the respondents want assessment under Heading 84.34. Shri Sohal argued that there is no separate invoice. He referred to the Notification No. 114/80-Cus., dated 19th June, 1980. He pleaded that the goods imported are Off-line keyboard and keyboard can be used for office purposes. He argued that the classification of 4 keyboards will be governed by Accessory Rules 1963. He pleaded that the keyboards were essential for the functioning of the imported machine for which the revenue has given benefit and these 4 keyboards are accessories and not components. He has relied on the order-in-original and pleaded that the order passed by the Collector of Customs (Appeals) is not a speaking order and has pleaded for the acceptance of the appeal. 4. Shri L.P. Asthana, the learned advocate who has appeared on behalf of the respondent pleaded that the keyboards imported by the respondents are to be used with the printing machine and are to be assessed under Heading 84.34 and the respondent is entitled to the benefit of Notification No. 114/80-Cus., dated 19th June, 1980. Shri Asthana argued that the keyboard classificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as other word processors computers and wire-services and in terms of the explanatory note at page 1346 of the CCCN under Heading 84.53, the essential requirements to a data processing unit were input unit, central processor and output unit and the Assistant Collector was of the view that these requirements were satisfied and, therefore, the machine in question was appropriately assessable under Heading 84.51/55(2) of the CTA. The respondent has also filed technical write-up which has been referred to by the Assistant Collector in his order and in the technical write-up it was mentioned that 4 Off-line video display keyboards i.e. 2 for each photo composing machine are required for input to each photo composing machine and are integral parts of a complete photo composing unit in single machine. The keyboard unit was meant for record/playback and would give an output which was optimum in the photo copying machine and this unit could record copy on disks for output on the photo composing machine and upto 5 keyboards/video display units could be used in the comp./set 4560 machine. Use of additional 2 keyboards were necessary for each photo setting machine when large number of copies h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a reference to the wordings of the Exemption Notification No. 114/Cus/80 will further reveal that it specifically exempted from levy of basic customs duty in excess of 30% ad valorem on photo composing machines with keyboards at serial No. 2 thereof, if imported by printing industry. It is, therefore, established that not only photo composing machines but their keyboards have also been specifically recognised by the Government of India for according partial exemption from levy of basic customs duty. So the observations of the learned Assistant Collector of Customs that keyboards did not enjoy such exemption, were based on misconception of facts only. 5. For that the descriptions of Tariff Heading No. 84.34 clearly show that it covers Machinery, apparatus and accessories for type-founding or type-setting; machinery, other than the machine tools of Heading No. 84.45/48, for preparing or working or working printing blocks, plates or cylinders; printing type, impressed flongs and matrices, printing blocks, plates and cylinders, blocks, plates, cylinders and lithographic stones, prepared for printing purposes (for example planned, grained or polished) . Since photo composing machi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w :- Section XVI 3. Unless the Headings otherwise require, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function . Chapter 84 5. A machine which is used for more than one purpose is for the purposes of classification, to be treated as if its principal purposes were its sole purpose . A simple perusal of these Notes shows that the principal purpose is the sole purpose. The machines imported by the respondents are photo composing machines with display screen for printing. The Department also admits that they are designed for use with photo composing machines. The respondents have claimed the benefit of Notification No. 114/80-Cus., dated 19th June, 1980. Relevant extract from the said notification is reproduced below :- Ch. 84 Notification No. 114-Cus., dated 19-6-1980 as amended by Notification No. 236-Cus., dated 29-11-1980 and Notification No. 38-Cus., dated 28-2-1982. The goods specified in the Table bel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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