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TMI Blog2008 (5) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... s duty subject to the condition that the importer followed the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 vide Sl. No. 33 of the Table annexed to the Notification. ATMs falling under Heading 8472 90 in the First Schedule to the Customs Tariff Act were mentioned at Sl. No. 1 in the said Table. A variety of other goods falling under different Tariff entries were mentioned at Sl. Nos. 2 to 32 of the said Table. All these goods were exempted from the whole of the duty of Customs leviable thereon. At Sl. No. 33 of the said Table, goods falling under any Chapter of the said Schedule to the Customs Tariff Act and described as "all goods for the manufacture of goods specified against Sl. Nos. 1 to 32 above" were entered for full exemption from payment of Customs duty. In the result, parts/components imported for the manufacture of ATMs could claim full exemption from payment of Customs duty under the above Notification, subject to the aforesaid condition. 2. The assessee imported parts/components for the machines of both 'P75' and 'P77' models, claiming the benefit of exemption under Sl. No. 33 of the Tabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recovery and the other for out-of-turn disposal of the appeal. As all the appeals involve a common issue, we allow the miscellaneous applications filed in the appeals of 2008 and proceed to dispose of all the appeals. 5. That both the machines ('P75' and 'P77' models) are covered by Heading 8472 90 of the First Schedule to the Customs Tariff Act is not in dispute. The question is whether these machines can be considered to be Automatic Teller Machines (ATMs). It is submitted by the assessee that the 'P75' model is capable for meeting 13 different requirements of a customer while the 'P77' model can subserve as many as 11 of these requirements. Only one of these functions is cash dispensing. According to the assessee, a machine with cash dispensing function as its sole function is a cash dispenser and one capable of providing a variety of facilities, like 'P75' and 'P77' machines, are to be considered as an ATM. In this connection, the assessee relies on an affidavit of their Engineer (Manufacturing Engineering), Shri Dinesh Heber, who claims to be a qualified industrial engineer from the Indian Institute of Industrial Engineering, Navi Mumbai and to have gained 12 years of profess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ATM requests the customer to enter the amount to be deposited. Once this information is supplied by the customer through the high security keyboard, the ATM issues a suitable envelope automatically. The customer inserts the currencies into the envelope and places it into the depository slot provided on the front side of the ATM. Only when the banks' computer authorizes the transaction, the depository slot is opened and it pulls the envelope as placed by the customer automatically. Once this is received, the ATM issues a receipt which is the confirmation by the bank about the receipt of the envelope. It is made clear that none of the functions narrated above are performed manually and the checks an controls employed in the machine, the computer attached to the machine and the network to which, these information are exchanged are one and the network to which, these information are exchanged are one and the same when it comes to either withdrawal or depository functions. In other words, the ATM, the computer, the controlling programmes, telecommunication links and the ATM switch and the bank servers are identical and one and the same for both withdrawal and depository functions. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned JDR, the machine cannot be considered to be an ATM. 7. We have examined the records and considered the submissions. It is a fact admitted by the appellants and their Engineer (Manufacturing Engineering) that the 'P77' machine has no cash or cheque depositing facility. For this very reason, the machine cannot be recognized as an Automatic Teller Machine inasmuch as, as per the HSN, ATMs have cash depository function also. The Board's Circular No. 41/2002-Cus. ibid also recognizes ATMs as sophisticated machines which not only dispense cash but also perform other banking transactions like depositing cash, collecting cheques, bill payments, fund transfers etc. The Circular further clarifies that Cash Dispensers which can only dispense cash at the valid request of the customers of the bank are not ATMs. For these reasons, we hold that the 'P77' machines are only Automatic Cash Dispensers and not Automatic Teller Machines and consequently the components imported by the assessee and used in the manufacture of such machines are not eligible for the benefit of exemption under Notification No. 25/2005-Gus. ibid. In the result, the Revenue's Appeal No. C/143/2007 and the assessee's Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the view in para 7 of Shri Dinesh Heber's affidavit, wherein he says that, for security reasons, banks are not willing to provide automatic credit facility as part of the depository function of ATMs. The literature produced by the learned counsel contains mention of 'future technologies', whereunder the facility of cheque/cash acceptance without using envelopes figures as one of the "future technologies", meaning thereby that technology has to advance further before an ATM can accept cash/cheque and credit it instantly to the customer's account without using envelopes or the aid of human agency. We, therefore, observe that Shri Dinesh Heber's averments contained in para 6 of his affidavit are bereft of truth or bona fides. 9. We have also noticed that the Commissioner of Central Excise, Pondicherry recognized another model of machine "Personas M Series 86" (hereinafter referred to as 'P86' model) manufactured by the assessee, as an ATM, while refusing to consider the 'P75' model as ATM. The learned counsel has placed on record a comparative account of the various features of the 'P75' and 'P86' models. In relation to cash/cheque depository function, it is found that the 'P86 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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