2014 (5) TMI 634 - AT - Customs

Classification - Import of flash memory card - Exemption under Notification No. 24/2005, dated 1-3-2005 - concessional CVD of 4% under Notification 6/2006-C.E., dated 1-3-2006 - Held that - Heading 8523 51 00 covers solid state non-volatile storage device. There is no dispute of the fact that the item under importation is a solid state non-volatile storage device. The only dispute is that whether flash memory and flash memory card are the same or are they different. The Notification refers to flash memory meant for external use with a computer or laptop as a plug-in-device. The goods under importation satisfy this description. Therefore, the argument of the lower appellate authority that flash memory and flash memory cards are different items has no sound technical basis. The product literature available on record clearly indicates that the item under importation is a solid state memory card and is meant for external use with a computer or laptop as a plug-in-device. The product literature further states that these cards can be plugged in without the need for an adapter. Thus, from the product literature, it is clear that the product under importation satisfies the description given on the Notification - Decided in favour of assessee.

Summary

Issues:
1. Interpretation of Notification No. 6/2006-C.E. regarding exemption for flash memory cards.
2. Determination of whether flash memory and flash memory cards are the same for the purpose of the notification.

Analysis:
1. The appeal was against the Order-in-Appeal passed by the Commissioner of Customs (Appeals), Mumbai-III. The appellant, M/s. Ingram Micro, imported flash memory cards and claimed exemption under Notification No. 24/2005 and concessional CVD under Notification 6/2006-C.E. The original authority denied the concessional rate, stating the cards did not function as plug-in-devices. The lower appellate authority also ruled against the appellant, interpreting the notification to exclude flash memory cards. The appellant argued that the cards were meant for external use with computers or laptops as plug-in-devices, supported by product literature showing they were solid state digital memory cards that could be plugged into various devices. The revenue authority supported the lower authorities' findings.

2. The Tribunal examined Notification No. 6/2006-C.E., which listed flash memory under goods meant for external use with computers or laptops as plug-in-devices. The dispute centered on whether flash memory and flash memory cards were the same. The Tribunal noted that the imported item was a solid state non-volatile storage device, falling under the description in the notification. The product literature confirmed the cards could be externally plugged into computers or laptops without adapters, meeting the notification's criteria. The Tribunal concluded that the lower authority's distinction between flash memory and flash memory cards lacked technical basis, as the cards satisfied the notification's requirements. Therefore, the Tribunal set aside the impugned order and allowed the appeal with any consequential relief.

In conclusion, the Tribunal's judgment clarified that flash memory cards fell within the scope of Notification No. 6/2006-C.E. as goods meant for external use with computers or laptops as plug-in-devices. The decision emphasized the technical aspects and product characteristics to determine eligibility for the exemption, ultimately ruling in favor of the appellant based on the evidence presented.