Customs, Excise and Gold Tribunal - Bangalore
Cce Cochin vs M/S. Ksedc on 7 March, 2001
Equivalent citations: 2001(131)ELT283(TRI-BANG)
ORDER Shri S.S. Sekhon, J.
1. This appeal is filed by he revenue against an order of Commissioner (Appeals), classifying Gist Cards and Transputer Card under heading 84.71 of the CET Act.
2. Revenue has taken the ground in appeal
a) Gist Card and Transputer Card are having no independent function and are not capable of functioning separately as envisaged in Chapter Notes 5 (b) of Chapter 84 of CET Act, 1985 and therefore they do not specify the conditions essential to be classified under 8471 should be classified under 8473 as parts of goods falling under 8171.
b) These cards are parts of Automatic Data Processing machines falling under Chapter 8471. They are used in Automatic Data processors for enhancing the capacity and function.
c) Transputers are chargeable to 20% advalorem duty under heading 8473 and the claim of the respondents is that they do not conform the specifications of heading 8471, is only because it is the duty of 15% advalorem.
3. When the matter was called none appeared for the respondents. This matter has been adjourned many times. After considering the arguments placed on record as filed by the advocate of the Respondents, and the submissions made by the Learned SDR for the revenue, and considering the matter we find:-
a) No material has been placed by the revenue on record to substantiate their ground that the said cards are not having independent function or they are not capable of functioning separately.
b) The respondents have submitted that these cards manufactured by them are units of automatic data processing machines specifically designed as parts thereof; these cards contain powerful micro-processors which are connected to the Central Processing Unit. The Transputer cards consists of a high Power Micro Processor, and can be used for parallel applications. The Gist Card similarly has a Micro Processor enabling it to receive data in one language, process and return the result, in another language to the Central Processing Unit, therefore they are capable of processing data independently.
c) Explanatory notes of Chapter 84 in the Tariff stipulates that such cards were classifiable under Heading 8471, since they are connected to the Central Processing Unit of Automatic Data Processing Machine and are capable of accepting and delivering data.
d) We find that Commissioner (Appeals) has come to a conclusion "there is no dispute that the Gist Card and the Transputer Card are capable of processing certain specific data. Even if they do not form complete data processing machines, there is no dispute that they can function as constituent units of automatic data processing system". Therefore he concluded that the items are appropriately classifiable under 84.71. Nothing has been produced in this appeal by Revenue's to upset the finding of the Learned Commissioner (Appeals), who has considered that the lower original authority had also not disputed these facts and has merely stated in the Order-in-Original authority that "But still I feel that the items cannot function independently". Commissioner (Appeals) has rightly dismissed this conclusion of the original authority based on "feelings of his" and not on material grounds and which was not passed on proper consideration of the facts. We find no infirmity in the findings of Commissioner (Appeals) as made out in the ground before us.
4. In view of our findings the Revenue's appeal is dismissed.
(Pronounced in Court on 7/3/)