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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.

45. The other judgment relied upon by Mr.Sridharan is in the case of Commissioner Taxes Officer, Anti Evasion, Zone III, Jaipur vs. M/s. Hawlet Packard India Sales Pvt. Ltd.3 decided on 19th February, 2016. There, the issue was about taxability of multi- functional device, which carry out the function of scanning, photocopier, fax machine and as computer printer, under the provisions of the Rajasthan Value Added Tax Act, 2003. There, the assessee paid tax at 4% for the period 1 st April, 2006 to 9th March, 2010, but the Revenue demanded tax at 12.5/14% under the residuary entry. The issue was whether the products could be said to be multi-functional machines such as printers under heading 8471.60 of the Customs Tariff Act, 1975. The Rajasthan High Court went by the Customs Tariff Act and came to the conclusion that the entry is wider, which includes not only computer printers, but computer peripherals also. When there is such wording of the specific entry, then, there was no scope for taking recourse to the residuary entry. It is in these circumstances that the Madras High Court judgment in the case of Canon India (P) Ltd. vs. State of Tamil Nadu 4 was followed so also the judgment in the case of Xerox India Limited (supra). Once we have come to the conclusion that the same was under a distinct law, then, even this judgment is of no assistance. 3 S. B. Sales Tax Revision Petition No. 15 of 2010 4 (2015) 80 VST 483 (Mad) J.V.Salunke,PA Judgment-MVXA.16.2018.doc