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TMI Blog2005 (6) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... he Lower Authorities after hearing submissions of the appellant and after going through the documents, classified the aforesaid machines looking to their various features and functions under sub-heading 8472.90. The said classification is under challenge in the present appeal. The appellants want classification under Heading 8471.60. The contention of the ld. Counsel for the appellant inter alia is that according to Note 3 of Section XVI of the Customs Tariff, machines design for the purpose of performing two or more complementary or alternative functions are to be classified according to the principal function; it is not in dispute that both the models under consideration are multi function machines in that they perform printing, copying/or scanning; it is also in dispute that the copying function also involves the use of the print junction, unlike the case of a photocopier; thus the printer and copier both use the printing function of the machine; thus printing is the principal function of these machines; further, 75% to 80% of the cost of the various components that go into making of the machines are towards the print function/print engine; thus in terms of the function of the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e generally used in the office for making large number of copies. The main machines are also capable of scanning and printing large print copies with varying speeds. Chapter note 5 (B)(c) clearly states that ADPM may be in the form of system consisting of a variable number support units and with subject to para (E), each unit is to be regarded as being a part of a complete system if it meets all of the conditions mentioned in chapter note 5 (c), (b). Chapter note 5 (C) states that separately presented units of ADPM ought to be classified under Heading 8471. Chapter note 5 (D) refers to printing, keyboards which satisfies the condition of para (B)(b), (B)(c) of chapter note 5(B). He also contended that since the machines are primarily used in commercial use in offices and shops, they fall within the heading 8472.90. 6. After hearing both sides, perusal of the records and the case laws relied on by the ld. Counsel, we find that both the Lower Authorities have given detailed reasoning in their order classifying the machines in question under Heading 8472.90 and distinguished the cases relied on by the ld. Counsel on facts that the cases relied on by them are not applicable to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of (a) digital laser printer with a high speed resolution; and (b) a digital document scanner. which has got the capacity to scan and instantaneously to reproduce the scanned material by a print out using the digital printer portion of the machine. Both the models have a part connectivity and capability of being connected to an external computer. The scanned documents are capable and can be stored as a computer file (in digital format) on computer so connected and in the case of model 4502 such storage in digital form can also be in the machine itself on the hard disc in it. The data so stored can be retrieved as desired. There is also a facility installed in model 4502 which with an optional modem attached can receive and send fax messages through telephone line and the computers. The machines though stand alone can be used as a printer or as a network printer connected to a computer network and inspection of the catalogue describing functions performed revealed that while fax function is optional, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdinary printer/photocopier but are specifically designed to function as machines to work in tandem with a computer. Nobody with the commercial sense would buy a computer adapted printer and work it without utilising the additional facilities inbuilt of working it with a computer. That does not make commercial sense. In commerce, a machine has to be understood to be principally designed with the commercial sense also in mind. It is therefore found that this machine is principally designed as an input-output printer to process the digital data being generated in the office environment now a days; therefore it has to be classified under Heading 8471.60 when Heading and HSN Notes under that heading are considered. No material has been led to show any other classification arrived at by the Tribunal or any other higher appellate body contrary to classification under Heading 8471.60 for similar machines. 11. Following in judicial discipline the settled classification under Heading 8471.60 cannot be unsettled. If it is required to be unsettled and the machines are to be upheld under Heading 8472.90, then a reference was required to be made to a Larger Bench. I find no reasons made o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ember (Technical) 17. [Order per : Jyoti Balasundaram, Vice-President]. - I have heard both sides on the difference referred to me. 18. The goods in question are digital laser printer with a high speed resolution and a digital document scanner. The scanner has the capacity to scan and instantaneously to reproduce the scanned material by a print out using the digital printer portion of the machine. They have a part connectivity and capability of being connected to an external computer. There is no dispute that the machines in question can work independently of being connected to external automatic data processing machines. However, they have computer adaptability and storage, hard disc etc. with the relevant software. The Revenue seeks classification under Customs Tariff Heading 8472.90 as office machines for the reason that they do not satisfy condition of Note 5(B) to Chapter 84 which provides that "Automatic data processing machines may be in the form of systems consisting of a variable number of separate units and subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system - if it is of a kind solely or principally used in an automat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the contention of the appellants that printing is a principal function of these machines. 19. The Tribunal's decision in the case of Xerox Modicorp. Ltd. v. CC [2001(130) E.L.T. 165] and in MX Software Services Ltd. v. CC [2001 (131) E.L.T. 422] are directly on the classification of similar imported multi function machines wherein it was held that the product with its inbuilt software etc. was specifically designed for connectivity to Automatic Data Processing units. In those cases also the multi function machines could function independently of being connected to external ADPM and the Tribunal held that such machines fell for classification under CTH 8471.60. There is no distinction between these two orders of the Tribunal and the present case, as the machines involved in all the cases including the present one are multi function machines which have connectivity and capability of being connected to an external computer and can also function in stand alone mode and in these circumstances there is no reason to differ from the earlier decisions. I, therefore, agree with the ld. Member (Technical) that the machines in question fell for classification under CTH 8471.60. 20.&e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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