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Classification of Pentium-II/Celeron Microprocessors imported by the appellants under Customs Tariff - 8542.19 claimed by the appellants vs. 8473.30 decided by the Department. Analysis: The appeal was filed against an order passed by the Commissioner of Customs (Appeals), Bangalore, regarding the classification of Pentium-II/Celeron Microprocessors imported by the appellants. The competing entries in the Customs Tariff were 8542.19 claimed by the appellants and 8473.30 decided by the Department. The Commissioner (Appeals) upheld the decision of the original authority based on an amendment to Customs Notification No. 23/98 by Notification No. 97/98, which classified Microprocessors under 847330. The Commissioner relied on an exclusion clause in the HSN Explanatory Notes stating that goods designed for computers are classifiable as parts of automatic data processing machines under 8473.30. The appellants challenged these findings. The appellants argued several points, including that populated PCBs should be classified under 8542 as Integrated Circuits, not as parts of computers under 8473.30. They cited precedents and rules for interpretation of the Schedule to support their claim. They also contended that a Notification cannot determine the classification of a product. The appellants emphasized that the impugned goods were Populated Printed Circuit Boards and should be classified under 8542.19, which deals specifically with Integrated Circuits. Upon careful review of the case records and definitions, the Tribunal determined that Integrated Circuits encompass a broad category of electronic circuits, while a Microprocessor is a specific type of Integrated Circuit containing the functions of a computer's Central Processing Unit. The Tribunal noted that the impugned items were Pentium-II/Celeron Microprocessors, specifically designed for computers, and mentioned as Processors in the Bill of Entry. Since Microprocessors are explicitly listed under 8473.30.10 in the Tariff, the Tribunal concluded that the impugned items were rightly classified under 8473.30 as parts of computers. Therefore, the appeal was rejected, upholding the decision to classify the items under 8473.30. In conclusion, the Tribunal's analysis focused on the specific nature of Microprocessors as parts designed for computers, leading to the classification under 8473.30. The judgment highlighted the distinction between Integrated Circuits and Microprocessors, emphasizing the functional aspect and specific use of the imported items in question.
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