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1. Heard both sides. The issue relates to classification of goods declared as multi-functioning printer, copier, fax, scanner Model No. 1802 and 4502 under Heading 8471.60 as output unit of ADPM. It is seen from the catalogue of machine model 1802, the machine is described as affordable office digital document production in one compact machine which can print, copy and fax. The catalogue for machine model 4502 describes machine as (digital invention for multi functional productivity) which can print, copy, fax and scan. Thus, these machines are multi functional which function in stand alone modes as well as in conjunction with ADPM falling to be classified under Heading 8472 as office machines.

5. The ld. DR appearing on behalf of the revenue submitted that there is no dispute on the fact that the machine is a copier which is admitted by the appellant. Besides, it is also admitted that it is a multi functional units capable of performing functions of a scanner, copier/printer and fax (optional) in stand alone mode as well in conjunction with ADPM. These machines are so equipped that even if not connected to external ADPM, they may perform their functions. In other words, these machines can work independently irrespective of the fact whether they are connected to external ADPM or not. He also submitted that such machines are generally used in the office for making large number of copies. The main machines are also capable of scanning and printing large print copies with varying speeds. Chapter note 5(B)(c) clearly states that ADPM may be in the form of system consisting of a variable number support units and with subject to para (E), each unit is to be regarded as being a part of a complete system if it meets all of the conditions mentioned in chapter note 5(c), (b). Chapter note 5 (C) states that separately presented units of ADPM ought to be classified under Heading 8471. Chapter note 5(D) refers to printing, keyboards which satisfies the condition of para (B)(b), (B)(c) of chapter note 5(B). He also contended that since the machines are primarily used in commercial use in offices and shops, they fall within the heading 8472.90.

(Pronounced in Court on _ _ _) Sd/-

(Krishna Kumar) Member (Judicial) S.S. Sekhon, Member (T)

7. I have seen and perused, with great efforts and concentration, the order prepared by ld. Member (Judicial), after the efforts of 17 months or so. It pains me and I can only blame my inability which is stopping me and persuading me to accept this labour put in by my ld. brother. I am therefore recording the following order.

8. The appellants are aggrieved by an order of the Commissioner of Customs (Appeals), who, vide the impugned order, confirmed that the imported digital printers having multi functions models No. 1802 and No. 4502 imported by Bill of Entry 253159 dt. 2-4-2002 were not classified under Heading 8471.60 as claimed but were required to be classified as other office equipment under Heading 8472.90 of the Customs Tariff.

I propose the matter may be heard by the Hon'ble President. 
                 Sd/-                                               Sd/-
           (Krishna Kumar)                                    (S.S. Sekhon)
          Member (Judicial)                                 Member (Technical)
 
 

Jyoti Balasundaram, Vice-President
 

17. I have heard both sides on the difference referred to me.
18. The goods in question are digital laser printer with a high speed resolution and a digital document scanner. The scanner has the capacity to scan and instantaneously to reproduce the scanned material by a print out using the digital printer portion of the machine. They have a part connectivity and capability of being connected to an external computer. There is no dispute that the machines in question can work independently of being connected to external automatic data processing machines. However, they have computer adaptability and storage, hard disc etc. with the relevant software. The Revenue seeks classification under Customs Tariff Heading 8472.90 as office machines for the reason that they do not satisfy condition of Note 5(B) to Chapter 84 which provides that "Automatic data processing machines may be in the form of systems consisting of a variable number of separate units and subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system - if it is of a kind solely or principally used in an automatic data processing system. [The condition (b) and (c) of Note 5B to Chapter 84 stipulate that the unit is to be regarded as being a part of the complete system if it is connected to the CPU either directly or through one or more other units and it is able to accept or deliver data in a form which can be used by the system and there is no dispute that these two conditions are satisfied in this case.] However, as per Note 5 (D), printers, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of paragraphs (B) (b) and (c) above, are in all cases to be classified as units of heading No. 84.71 and Note 5(D) is not governed by Note 5(E) which sets out that machines performing a specific function other than data processing and incorporating or working in conjunction with an automatic data processing machine are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. Therefore, what is required to be seen for determination of the correct classification is whether the goods are either printers or keyboards or X-Y coordinate input devices or disk storage units. The contention of the appellants is that they are printers. Let me examine the correctness of this contention. The goods are multi function digital printers Model No. 1802 and 4502. Both consist of digital laser printer and digital document scanner. Both models have the capability of being connected to an external computer; the document scanned can be printed using the digital printer portion of the machine on the spot. The scanned documents can also be stored as a computer file in digital form in a separate external computer and in Model 4502, the scanned documents can be stored in digital form in the hard disc inbuilt in the machine. The scanned documents stored in digital form either in the computer or in the machine itself can be retrieved and taken as a print out. When a modem is installed in the digital printer, it can receive and send fax through a telephone line. The machines can be used as a stand-alone printer or as a network printer, connected to a computer network. The stand of the appellants that 75% to 80% of the cost of the various components is towards the print function/print engine has not been controverted. The printer and copier both use the printing function of the machine. Thus I agree with the contention of the appellants that printing is a principal function of these machines.