ORDER
P.C. Jain, Member (T)
1. Matter called, none for the respondents.
2. Dispute for the present matter is regarding classification of one set system P.D. Fanuc Tape Cut L Machine imported along with Fanuc Tape Cut Wire Cut Electric Discharge Machine.
3. Original Authority has held the same to the micro-computer and not simply a transcribing machine of coded data from one medium to another. However, lower appellate authority has considered it to be a transcribing machine for transferring coded information from one type of data medium to a different type. The said lower appellate authority has held that the system in dispute receives inputs through Magnetic tape and transcribes data on to NC Tape which are then used in the Fanuc Tape Cut Machines. The said authority however holds that the system operate via automatic programming language known as FAPT. It is a complete system in itself and not depending on the main machine for its output.
4. On the other hand the Revenue reiterates the findings of the Asst. Collector in the Order-in-Original as follows :-
“Catalogue/literature of the item in question describes the goods as low cost desk top automatic N.C. Tape preparation system featuring graphic display. Fanuc System P-MODEL D wherein NC tapes for the Fanuc Cut series are prepared using the Fanuc System viz. automatic programming language known as FAPT with the addition of available software. The Fanuc System P Model can also serve for preparing tape for NC machine tools of other manufacture. The configuration shows that it is a complete computer having keyboard, paper tape punch, paper tape reader, graphic display (Video CRT Screen) printer main control unit (micro processor memory) magnetic tape cassettes, loading mechanism having software application for wire cut DDMS, NC Tape reading and correction, self study of FAPT programming language turning and milling courses available for Failure Diagnosies, involutecurve processing. It also has options for FAPT Turn for turning, area machining finishing allowances, compensation tool nose radius compensation etc. 2-1/2 axis rull-ing and drilling curve fitting, point group processing. NC data displayed machining time computation is also possible. It use the software available on magnetic tape cassettes according to the need of machine.
In brief the item is a micro computer with semi-conductor memories, alphaneumatic keys, Ten key jo keys with character 64 x 24 and graphic of 512 (W) x 384(H) dots screen with speed of 2 lines/section having recording density of 800 transfer rate 12 K bites/SC and storage capacity of 245 KB cassette having paper tape reads of channel tape (JIS) with reading speed of 150 character/section paper tape punch of 8 channel paper tape 0IS) with running speed of 50 character/section and also with XX plotter (option).”
5. At this stage we may take note of notification 237/83-Cus., dated 18-8-1993 around which the dispute revolves whether the imported goods are entitled to the benefit of the aforesaid notification, the notification is applicable to the following goods :-
TABLE
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Sl.No. Description of Goods
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1. Magnetic and optical readers
2. Machines for transcribing data on to data media in
coded form
3. Paper tape readers
4. Paper tape punch
5. Card readers
6. Card Punch
7. Dot matrix printers
8. Line Printers
9. Thermal printers
10. Xerographic printers
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6. It is apparent that the notification is only applicable to the peripherals of the computer and not to the complete computer.
7. From the findings of the lower appellate authority itself we observe that the disputed item operate via automatic programming language. It is a complete system in itself. Therefore, the functioning of the imported goods is not merely that of transcribing data from one medium to another medium but it is also to process the same. We are inclined to agree with the finding of the Asst. Collector that the imported system in dispute is a micro-computer for the purpose of preparing tapes for use in the Fanuc Tape Cut Wire Cut Electric Discharge Machine. In view of the foregoing discussion benefit of Notification 237/88, dated 18-8-1993 cannot be extended to the item in dispute and hence we set aside the impugned order and allow the appeal of the revenue.