The Bangalore bench of the Customs, Excise & Service Tax Appellate Tribunal( CESTAT ) has held that fingerprint readers having individual functions cannot fall under Customs Tariff Heading ( CTH ) of computer accessories. M/s. Snom Technology India Pvt. Ltd., the respondent had imported ‘Crossmatch L Scan Guardian F LSE’ of 160 Nos. The importers had claimed that this item was part of Automatic Data Processing Machines and accordingly, classified items under Chapter Heading 8471 6050 as part of the computers.
On examining the samples, the operation manual and the catalogue of the goods, it was found that the item imported functions as a fingerprint reader and not as a part or accessory of the computer; challenging the assessment order, the respondent filed an appeal before Commissioner. The Revenue argued that the Commissioner ( Appeals ) had ignored the fact that the item was not a data processing machine or any part or accessory of the same. The Fingerprint reader is a device that only reads the Fingerprint of the user and hence it is the biometric reader. Scanner covered under CTH 8471 6050 is a document scanner that is used for scanning the documents that are data and the fingerprint reader is not the one that is covered under the above CTH. A little consideration of the literature available on the web will show that the item is a machine having individual functions and sold as a fingerprint reader and not as part or an accessory of the computer.
It may be seen that the scanners under the heading are covered under the broad category of input/input devices of a computer. The fingerprint reader imported by an importer can by no stretch of imagination be considered as input/out unit of a computer. The Authorised Representative submitted that the Fingerprint scanner is equipment having individual functions. It reads the fingerprint of the user and hence, it is a biometric reader. By Chapter Note 5(E) to Chapter 84, such devices do not fall under CTH 8471 but are classifiable under residual heading 8543 7099 as they are not specifically covered under any other heading.
The item is a machine having individual functions and sold as a fingerprint reader and not as part or accessory of the computer. Scanner covered under CTH 8471 6050 is a document scanner that is used for scanning documents. Since the specific function of the imported item is to mark attendance or to take note of the persons of the employees for attendance or payroll or leave, they cannot be classified under Chapter 84 as it excludes from this Chapter as per Chapter Note 5(e). A two-member bench comprising Mr P A Augustian, Member ( Judicial ) and Mrs R Bhagya Devi, Member ( Technical ) held that “the product in question merits classification under CTH 8543 instead of CTH 8471 as claimed by the respondent.” The CESTAT set aside the impugned order and the appeal filed by the Revenue is allowed.