2006 (10) TMI 280 - AT - Central Excise

Summary

Issues: Appeal against order extending exemption from CVD on cooling fans and heat sinks imported with microprocessor under notification No. 6/2002-C.E.

Analysis:
The judgment pertains to an appeal filed by the Revenue against the order of the Commissioner (Appeals) Airport, which extended the benefit of exemption from payment of Countervailing Duty (CVD) on cooling fans and heat sinks imported along with a microprocessor as per notification No. 6/2002-C.E. The Commissioner (Appeals) based the decision on the fact that cooling fans and heat sinks are integral parts of the microprocessor, fully integrated with it, and packed as a single composite unit. Both the microprocessor and cooling fan were classified under the tariff heading 84733010 of the Central Tariff Act (CTA). The judgment highlighted that as per Serial No. 261A of the table to the notification, microprocessors of computers other than specific components falling under chapter headings 84.71 or 84.73 of the CTA are eligible for exemption. Since the goods in question were considered parts of the microprocessor for computers other than motherboards, the Tribunal held that the Commissioner (Appeals) correctly extended the benefit of the notification. Consequently, the Tribunal upheld the impugned order and dismissed the appeal filed by the Revenue.