RATE OF TAX ON ITEM ‘FINGER PRINT TIME ATTENDANCE’ AND ‘FINGER PRINT
ACCESS CONTROL SYSTEM’ IMPORTED FROM ABROAD AND SOLD IN DELHI AND IN OTHER
STATES OF INDIA UNDER DVAT ACT, 2004
Date:
28.05.2013
ASSESSEE SUBMISSION: that ‘Finger Print
Time Attendance’ and ‘Finger Print Access Control System’ covered
under Excise code no. 85437099 can be covered under sub-entry 26 of entry no.
41A of Schedule III of the DVAT Act, 2004. He contended that these items are
similar to the items mentioned in entry relating to ‘IT Products’ and are
rather advance version of the products which are now available with latest technology
i.e. radio frequency identification card systems (RFID card system) and
bio-metrics systems.
DEPARTMENTAL REPRESENTATIVE (DR): stated that entry
no. 41A & 84 of the Schedule III of the said Act cannot be read in
isolation as these entries are governed by the notes as mentioned against the
relevant entry under the Central Excise Tariff Act, 1985 and also notes
appended to these two entries of the DVAT Act, 2004. In case the description
given in DVAT entry is different from the description given in Central Excise
Tariff Act, 1985, then the entry as mentioned in Schedule III of the DVAT Act,
2004 shall prevail. The relevant notes of DVAT Act in respect of entry no. 41A &
84 of the Schedule III of the said Act which are common for both these entries
have been reproduced as under:-
Note:- (1) The Rules for the
interpretation of the provisions of the Central Excise Tariff Act, 1985 read
with the Explanatory Notes as updated from time to time published by the
Customs Co-operation Council, Brussels apply for the interpretation of this
entry and the entry number 84 of this Schedule.
Note:- (2) Where any commodities
are described against any heading or, as the case may be, sub-heading, and the
description in this entry and in entry number 84 is different in any manner
from the corresponding description in the Central Excise Tariff Act, 1985, then,
only those commodities described in this entry and in the entry number 84 will
be covered by the scope of this notification and other commodities though
covered by the corresponding description in the Central Excise Tariff will not
be covered by the scope of this notification.
Note:-(3) Subject to Note (2), for
the purpose of any entry contained in this notification, wherein the description
against any heading or, as the case may be, sub heading, matches fully with the
corresponding description in the Central Excise Tariff, then all the commodities
covered for the purposes of the said Tariff under that heading or sub-heading
will be covered by the scope of this notification.
Note :-(4) where the description
against any heading or sub-heading is shown as "other", then, the
interpretation as provided in Note 2 shall apply.
For the purposes of
examining as to whether the items under determination is covered by both the
Acts i.e. DVAT Act, 2004 and Central Excise Tariff Act, 1985, it must satisfy
the condition of matching the entry in both these Act as given at note (3) or
covered only under DVAT Act, 2004 as it falls in the above note (2) & (4).
The relevant part of entry no. 41A along with sub-entry (26) of Schedule III
appended to the DVAT Act, 2004 have been reproduced for examining whether the
products under determination fulfill the above mentioned conditions as laid
down in DVAT Act, 2004:-
Entry no. 41A- Information Technology products as per the
description in column (2) below, as covered under the headings, or sub-heading mentioned
in column (3), as the case may be, of the Central Excise Tariff Act, 1958 (5 of
1986).
|
Serial no.
|
Description
|
Central Excise
Tariff Heading
|
|
(1)
|
(2)
|
(3)
|
|
26
|
Signal generators
and parts thereof.
|
8543
|
The relevant entry as
covered under the heading or subheading mentioned in (3) as the case may be, of
the central excise tariff Act, 1985 (5 of 1986) has been reproduced below:-
|
8543
|
Electricals
machines and apparatus having individual functions, not specified or included
elsewhere in this chapter
|
The DR stated that on comparing the sub-entry (26) of
entry 41A of the Schedule III appended to the DVAT Act, 2004 with the entry of
same HSN code in the Central Excise Tariff Act, 1985, it is seen that the
description of the sub-entry (26) of entry no. 41A of Schedule III appended to
the DVAT Act, 2004 differs from entry having HSN code (8543) of the Central
Excise Tariff Act, 1985, so as detailed out in note (2) given at the end of
entry no. 41A of Schedule III of the DVAT Act, 2004 shall prevail and the HSN
entry and its sub-heading will not play any part in deciding the product.
He further stated
that the items i.e. ‘Finger Print Time Attendance’ and ‘Finger Print Access
Control System’ are not covered in entry no. 41A of Schedule III appended to
the DVAT Act, 2004 and therefore, are unspecified items.
IN
DR’s opinion the item ‘‘Finger Print
Time Attendance’ and ‘Finger Print Access Control System’ is not covered by
entry no. 41A of Schedule III or any other entry of the Schedules of DVAT Act,
2004 and is general unspecified item falling under section 4 (1) (e) of DVAT
Act, 2004 and shall attract
tax @12.5%.
Regards
CA. Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001
Mobile:- +91-9873082769
Website: www.caaga.co.in
