2006 (5) TMI 248 - AT - Customs

Summary

Issues:
Classification of imported Pentium-II/Celeron Microprocessors under CTH 8473.30 as parts of Automatic Data Processing Machine and not as Populated Printed Circuit Boards under CSH 8473.33. Benefit of Notification No. 23/98-Cus dt. 2-6-1998 at Sl. No. 188.

Analysis:
The case involved the classification of imported Pentium-II/Celeron Microprocessors under CTH 8473.30 as parts of Automatic Data Processing Machine and not as Populated Printed Circuit Boards under CSH 8473.33. The lower authority had classified the item under CTH 8473.30 without granting the benefit of Notification No. 23/98-Cus dt. 2-6-1998 at Sl. No. 188. The issue was whether the item should be considered as a part of a computer classifiable under 8473.30. Both the appellant and respondent relied on a previous judgment in the case of M/s. Cascade Systems v. CC, Bangalore, where it was held that the item is not a Populated Printed Circuit Board but a part of a computer. The Revenue argued that the benefit of the Notification should be denied based on the description of Sl. No. 188.

The Tribunal considered the findings of the previous judgment in the case of M/s. Cascade Systems, which clarified the nature of Integrated Circuits and Microprocessors. The judgment explained that a Microprocessor is a type of Integrated Circuit specifically designed for computers, containing the functions of a Central Processing Unit. It was noted that the imported items were Pentium-II/Celeron Microprocessors, which are parts of a computer classifiable under 8473.30. The Tribunal rejected the Revenue's contention that the item should be classified as a Populated Printed Circuit Board, affirming that the item is eligible for the benefit of Notification No. 23/98 at Sl. No. 188. The Commissioner (Appeals) had also found the item eligible for the Notification's benefit. Consequently, the Tribunal dismissed both appeals, upholding the classification of the imported items as parts of a computer under 8473.30 and granting them the benefit of the Notification.

In conclusion, the Tribunal clarified the classification of the imported Pentium-II/Celeron Microprocessors as parts of a computer under CTH 8473.30, rejecting the Revenue's argument to classify them as Populated Printed Circuit Boards. The judgment emphasized the specific nature of Microprocessors as Integrated Circuits designed for computers, thereby affirming the eligibility of the imported items for the benefit of Notification No. 23/98 at Sl. No. 188.