9911796707
TMI Blog2023 (12) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... (correct CTH 8543) as electrical instruments not specified elsewhere as sought in the appeal of the revenue or under CSH 8471 4190 of the Customs tariff as ADPM, as claimed by the respondents. The goods in issue work in conjunction with a server and process data in digital format. The device has the facility to scan the fingerprint of any person seeking access to an area which the user desires to restrict. The finger print of arson seeking entry to the premises is scanned and digitised8 compared with data of such finger prints already stored in the memory of the device. If the current image is found in the database, the person is allowed access and his attendance is marked. There is also an additional check of the identity of the person by comparing the Personal Identification Number (PIN) required to be entered with such PINs stored in the memory of the device. The data of authorized persons received are transferred to a separate server which maintains particulars of the staff such as salary and leave important for the employer. 10.1 There is no dispute that the subject goods are correctly under 8435 7309 (8543) if excluded from CH 8471. Appeal seeks classification of the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s use Linux as their operating system. This by itself does not prove that the impugned goods are freely programmable since Linux operating system is used mostly for its stability. Also, these devices being designed for specific usage do not require to be freely programmable. The data regarding time and attendance, contained in these devices are sensitive in nature and could be tampered with, if they are capable of being freely programmed in accordance with the requirements of the user. However, it appears that the impugned goods could be customized by the manufacturers according to the requirement of the user and are not freely programmable by the user themselves to suit their requirements." 3. The learned counsel for the appellant submits that this is the second round of litigation before Tribunal. He further submits that the Learned Commissioner (Appeals) has completely misread the remand directions wherein the Tribunal had directed whether the impugned machine is capable of being freely programmed in accordance with the requirements of the user and proceeds to examine the issue once again afresh based on the technical and functional nature of the impugned machine. He submits th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me and Attendance Systems reads the data from the proximity cards/smart card of the user when it is flashed near the device and hence it is a proximity card reader. Hence, rejects the classification claimed by the appellants under CTH 8471 4190 as Automatic Data Processing Machines and classifies the impugned goods under CTH 8543 7099. 6. Now the question arises as to whether the item is classifiable under Chapter 8543 7099 as claimed by the Revenue or under Chapter 8471 4190 as claimed by the appellant. Both the relevant Chapter Tariff Headings reproduced herein below: Chapter 8543: Heading No. Description of Article Unit Rate of duty Standard Preferential Areas 85.43 Electrical machines and apparatus having individual functions, not specified or included elsewhere in Chapter 85. 8543 70 99 ---Other u 7.5% - Chapter 8471: Heading No. Description of Article Unit Rate of duty Standard Preferential Areas 8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for other purposes. These facts are not in dispute. Based on the General Rules of Interpretation and the Chapter Notes, the item needs to be classified in the heading akin to it or where the specific description is provided. In this case, the data collection device imported by the appellant is nothing but a card reader working in conjunction with the server. Thus, this device functions as proximity readers/badge readers, which are specifically classified under Chapter Heading No.8543 and the relevant Chapter Note 5(E) reads as: Chapter Note 5(E) to Chapter 84 reads: "Chapter Note 5(E) to Chapter 84 "Machines performing a specific function other than data processing and incorporation or working in conjunction with an automatic data processing machine are to be classified in the headings appropriate to their respective functions or, falling that in residual headings". 8. Since the specific function of the imported item is to mark attendance or to take note of the persons of the employees for the purpose of attendance or payroll or leave, they cannot be classified under Chapter 84 as it excludes from this Chapter as per the Chapter Note 5(E) discussed above. 9. In the case of Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
