TMI Blog2015 (6) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... e used together without problems or conflict’ or consistent or in keeping (Concise Oxford Dictionary), it stops short of saying that the machines work on the basis of other computers. Further, the word conjunction means that these machines are to be connected and worked together in coordinated manner with another computer. It has been demonstrated amply that the machines can work independent of any other computer for performing its work. With regard to reproducing and displaying machines with calculating functions as stated in the HSN, electronic programmable calculators differ from automatic data processing machines in particular by the fact that they cannot execute without human intervention a processing programme which requires them t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DER [Order per : B.S.V. Murthy, Member (T)]. - The respondent M/s. Analogic Technomatics Pvt. Ltd. (ATL) is a manufacturer of PC lite, Hand Held Data Recorder and Intelligent Hand Held Computer. ATL had classified these products under Chapter sub-heading Nos. 8470.00, 8473.20 and 8470.00 up to 31-3-2004 and paying duty at the rate of 16% ad valorem. From April, 2004 onwards, ATL changed the classification of all these products to Chapter sub-heading No. 8471.00, as computers and cleared them on payment of duty at the rate of 8% ad valorem up to 8-7-2004 and at nil rate of duty thereafter availing exemption in terms of Sl. No. 265 of Notification No. 6/2002-C.E., dated 1-3-2002. 2. In the impugned order, the Commissioner took a view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne also has the features like built-in printer with BARCODE printing option and optional features like built in-Modems (PSTN/GSM/CDMA), smart card reader, TCP/IP, BARCODE reader, etc. This machine is windows based with Intel 8 Bit processor. The input device is 30 key pad and output device is a 80 character LCD with built-in printer. The programming/application language namely C is supported by Micro C operating system. In the flash disk, BIOS and the operating system are loaded. Application software can be developed by the user in any high level language like C and the product is thus user programmable. Diversified and different application programmes (5 to 8) can be stored in this machine. It has independent automatic data processin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his can store diverse applications and uses, it cannot be considered as having an universal application usage. 3. From the above, it can be seen that where a machine can perform only one function at a given point of time, Revenue contends that it can perform only one function at a time even though it has got diverse software. Where the machine can perform diverse functions, it is the submission of the Revenue that even though it is capable of diverse applications, it cannot be considered as having a universal application usage. Moreover, as per the Chapter Notes of Chapter 84 according to Chapter Note 5(a), the expression automatic data processing machine means : (i) Digital machines, capable of (1) storing the processing pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16. It is stated by the notice that since from the catalogues it was observed that the products are designed to access services provided by operating system programmable with personal computer, this would mean that these products are compatible with a personal computer. The notice on this basis states that these machines are working in conjunction with the computers. The assessee contends that all it means is that the programmes are transferable from a personal computer to these machines and vice versa. The question is whether the ability to work together with a computer should be understood to be the ability to work only on the basis of a computer with the machine incapable of performing this function otherwise. In the present case these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocessing run without human intervention. This is also supported by the opinion of the experts. This would be the clincher to rule out the classification of the products under Ch. S.H. No. 8470.10. The notice also refers to these products as accounting machines and similar machines incorporating calculating devices. It is not clear of the three machine which were to be dealt as the accounting machines. However, the explanatory notes to the account machines also state that the structure of accounting machines is appreciably the same as that of calculating machines. In addition to manual input arrangements for variable data (e.g. Debit/Credit operations), like calculating machines, they may be fitted with devices for reading punched cards or t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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