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iii. Inclusion of the refundable security deposit in the value upon which sales tax is payable on the leasing of Multi- Functions Printers.

9. The appellant also forwarded copies of the invoice dated 11th July, 2005 pertaining to the sale of multi-functional printers and another invoice of the same date pertaining to sale of parts, accessories, drums etc. of these multi-functional printers. A copy of the agreement dated 11th July, 2005 pertaining to sale of multi- functional printers was also relied upon.

11. Being aggrieved by the order dated 12th December, 2011, the appellant moved an appeal before the MSTT being VAT Appeal No.30 of 2012. The MSTT, by its order dated 26th September, 2017 upheld the DDQ Order dated 12 th December, 2011. The appellant thereafter filed a Rectification Application No.77 of 2012, which was dismissed by the MSTT on 9th January, 2018.

12. The claim of the appellant is that the products in question are essentially printers. They are capable of accepting and processing data in a wide range of operating systems and application programs of receiving data input from multiple sources and of printing data output on a self-contained printing unit. The other functions are that multi-functional printers incorporate significant data processing features (such as an internet web page from which the printers can be programmed and operated from remote locations over a computer network), electronic mail (e-mail) management services, data storage and a wide array of other digital data processing functions. The multi- functional printers can also function as an independent, standalone device, or may be connected with other such machines J.V.Salunke,PA Judgment-MVXA.16.2018.doc and units in local or wide area networks (LAN/WAN). The heart of the multi-functional printers is a high-power, freely programmable central processing unit (CPU) which organizes and conducts the data processing functions of this multi-functional printer. The CPU is also capable of running a number of administration protocols. The multi-functional printer also features a standard hard drive. The multi-functional printer contains an output unit in the form of an electrostatic digital printer. It is capable of sensing numerous paper sizes and of handling a wide range of print media. The multi-functional printer also allows up to seven different settings that a user may program to accept custom media. The printer unit can accept digital data files either from the multi-functional machine's own central processing unit or from one or more computers connected to the data processing network on which the multifunctional printer resides. Also included within the same housing is an integrated input unit in the form of a high speed optical scanner. The scanner features a device which reads the document to be scanned. The scanner converts the scanned data into a digital document. The device can scan to file storage or to an internal network server or to external network servers or to an email box. In addition to the above components, a multi-functional printer also has an optional one or two-line facsimile modem. Thus, the J.V.Salunke,PA Judgment-MVXA.16.2018.doc multi-functional printer incorporates in a single housing a freely programmable CPU, an automatic data processing digital output unit and an automatic data processing digital input unit. To summarize, the multi-functional printers are modular units which connect to the computer/computer network and are used in automation activity of printing. The heart of the multi-functional printer consists of a printing mechanism to perform the basic function of printing. In addition to the primary function of printing, other incidental functions performed by multi-functional printers are scanning and copying or scanning, copying and fax. However, the essential function of the product is nothing but printing. This is quite evident from the fact that all of the above functions involve printing except in the case of scanning. In the case of copying and faxing the output, which is the document received as fax or the document which is to be copied, is printed using the same cartridge which is used for printing a document from the computer. Therefore, if the printer cartridge is removed then only scanning alone can be done.

21. As already established above, multi-functional printers are modular units which connect to the computer/computer network and are used in automation activity of printing. The heart of the multi-functional printers consists of a printing mechanism to perform the basic function of printing. In addition to the primary function of printing, other incidental functions performed by the multi-functional printers are scanning and copying or scanning, copying and fax. However, the essential function of the product is nothing but printing.

43. The other argument is that Entry C-56 is in respect of IT products, as may be notified by the Government from time to time. We are mindful of the fact that, that is how the Entry C-56 reads, but though it refers to IT products, it equally says "as maybe notified by the State Government from time to time". In the notification in question, the products have been defined and those are automatic data processing machines and units thereof and various other products. It may be that the appellant contends that the multi-functional printers sold by them are classifiable under Entry 84.71 of the IT products notification as input units and output units and these words having not been defined, they must be understood in their ordinary sense. So J.V.Salunke,PA Judgment-MVXA.16.2018.doc understood, the multi-functional products are squarely covered by the term "input units" and "output units". The multi-functional printers are able to receive information put by an user into the computer or via a document provided in the scanner. This information is then brought out by printing, copying or scanning into storage. We are not in agreement with Mr.Sridharan and accepting his argument would mean we ignore and brush aside the notification dated 1st April, 2005. It may be that multi- functional printers are classifiable under Entry 84.71 of the IT products notification as automatic data processing machine or units thereof or as other units of automatic data processing units, but insofar as the subject notification is concerned, they have not been included. It may be that the multi-functional printers of the appellant cannot be operated independently, but are designed to operate in conjunction with an automatic data processing machine such as a computer. It may be that it is connected to central processing unit of the automatic data processing machine via a cable to accept data from the same and deliver data in a form usable by the system. Once the controversy is to be decided on the touchstone of the MVAT Act and the Schedule Entry thereto and the notification referred therein, then, function and usage of the multi-functional printers can hardly be of any assistance.