Customs, Excise and Gold Tribunal - Tamil Nadu
Spa Computers Ltd. vs Commissioner Of C. Ex. on 26 September, 1997
Equivalent citations: 1999(110)ELT689(TRI-CHENNAI)
ORDER
V.P. Gulati, Vice President
1. The issue in the appeal relates to the classification of the goods which have been described as SPA remote. The learned lower appellate authority, after taking note of the technical opinon as was placed before him in Para 4 has entered the following finding :-
4.I have considered the submissions made. I find that the appellants had claimed classification under Heading 8473 before the Asst. Collector. In the Appeal Memorandum they have stated that the classification should be under sub-heading 8479.00 as "Machines and mechanical appliances having individual function, not specified or included elsewhere in this chapter", and in the same Appeal Memorandum, in their Prayer, they have sought the classification of the goods under sub-heading 9026.00. The reason being that the product function is of converting various process parameters into electrical signals which could be accepted by the Computer for processing of such data. The performance of the product is to protect the host computer from environment. The appellants appeared to be harbouring doubts as to the actual classification of the product. They have ultimately sought classification under 9026.00. From the Technical Write-up given by the appellants also the product "SPA Remote" it is seen that "this is a Micro-processor based Remote Terminal Unit to be used for Data Acquisition and Process Control Applications. The SPA-Remote is an intelligent controller with an RS 232C serial communication Interface. The SPA-Remote scans all the process inputs and stores them in the data base. The SPA-Remote can take the commands from an external system such as a Computer, for activating or deactivating the process outputs. Thus the SPA-Remote can be used from pure data acquisition applications. The SPA-Remote is a ruggedised and powerful controller, which could be kept close to the process which has to be monitored or controlled." It is evident from the Technical Write-up given, that the product would come within the purview of Note 5(b) to Chapter 84. The product is connectable to a computer and it is designed as a part of the system which accepts and delivers signals. The classification of the product under sub-heading 8471.00 is correct. The appellants plea for classification under Chapter Heading 9026 as instruments and apparatus for measuring or checking the flow levels, pressure or other variables of liquid or gases, is not correct. The impugned goods do not perform any of these functions. The Order of the Asst. Collector is correct and the appeal is rejected.
2. The learned Consultant for the appellants has pleaded that the Board has issued a notification under Section 37B, holding that programmable controllers would be classifiable under Tariff Heading 85.37 and subsequently, vide Notification issued under Section 37B, communicated by Cochin Commissionerate's Trade Notice No. 95/96, dated 2-9-1996. This classification, he has pleaded, has been further re-considered and it has been held that these goods will be classifiable under Tariff Heading 90.32. He has pleaded the appellant's goods answers to the description as set out in this Circular.
3. Heard the learned JDR for the department.
4. We observe that no literature of the PL controllers has been provided to show that the appellants goods confirm to the same specifications that are in the Trade Notice referred to before us, issued by the various Commis-sionerates. We notice that the item in question is being used as an adjunct with the computer for the purpose of the control and this, therefore, has to be considered under Note 5(b) of Chapter 84 as held by the learned Collector, as to be an item answering to the description of data processing machines as set out under this Note. Note 5(b) for the purpose of convenience of reference is reproduced below:
CHAPTER 84 - NOTE 5 (b)
(b) Automatic data processing machines may be in the form of systems consisting of a variable number of separately-housed units. A unit is to be regarded as being a part of the complete system if it meets all the following conditions :-
(i) it is connectable to the central processing unit either directly or through one or more other units;
(ii) it is specifically designed as part of such a system [it must, in particular, unless it is a power supply unit, be able to accept or deliver data in a form (code or signals) which can be used by the system].
Such units presented separately are also to be classified in Heading No. 84.71.
Heading No. 84.71 does not cover machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function. Such machines are classified in the headings appropriate to their respective functions or, failing that, in residual headings.
5. In the light of the above, we find no infirmity in the reasoning of the lower appellate authority, taking into consideration the technical opinion which has been recorded in Para 4.
6. We, in the circumstances, hold that there is no merits in the plea of the appellant and dismiss the appeal.