2007 (10) TMI 44 - AT - Customs

Microprocessors classified under Heading 85.42 to avail exemption under Not. 23/98 Dept. reclassified the goods as Populated Printed Circuit Boards In view of Tribunal s decision in case of identical goods, impugned gods are eligible for exemption, as parts of automatic data processing machines

Summary

Issues: Classification of imported goods as Microprocessors or Populated Printed Circuit Boards (PPCBs) under Customs Tariff Act. Eligibility for concessional rate of duty under Notification No. 23/98-Cus.

In the judgment delivered by the Appellate Tribunal CESTAT, Chennai, the appellants had imported Intel Pentium Celeron Microprocessors and cleared them at a concessional duty rate applicable to Integrated Circuits under Heading 85.42 of the Customs Tariff Act. The department issued show-cause notices to reclassify the goods as Populated Printed Circuit Boards (PPCBs) under SH 847330 and demanded differential duty. The original authority rejected the contention that the goods were Microprocessors classified under Heading 84.71 as part of Automatic Data Processing Machines. The appellants argued that the Microprocessors should be classified under SH 8473.30 as parts of Automatic Data Processing Machines to avail the concessional duty rate under Notification No. 23/98-Cus. The original authority and the Commissioner (Appeals) held the goods to be PPCBs, denying the benefit of the Notification, leading to the appeals by the assessees.

The Tribunal considered similar cases where goods were held to be microprocessors and parts of Automatic Data Processing Machines, eligible for the benefit of Notification No. 23/98-Cus. The decision in Commissioner of Customs, Bangalore v. SES Computers & Technologies Pvt. Ltd. was cited, and the Tribunal's decision in favor of H.C.L Infosystems Ltd. was also mentioned. The civil appeal filed by the department against the SES Computers & Technologies case was dismissed by the Apex Court, establishing precedent. Relying on the cited case law, the Tribunal held that the appellants were entitled to the benefit of the Notification for the imported microprocessors. Consequently, the impugned orders were set aside, and the appeals were allowed, granting consequential reliefs to the appellants.

In conclusion, the judgment clarified the classification of the imported goods as Microprocessors and their eligibility for the concessional duty rate under Notification No. 23/98-Cus. The decision was based on established case law and precedent, ensuring consistency in the treatment of similar goods. The Tribunal's ruling provided relief to the appellants by overturning the original authority's classification of the goods as PPCBs, thereby allowing them to benefit from the concessional duty rate applicable to Microprocessors as parts of Automatic Data Processing Machines.