2016 (7) TMI 361 - AT - Customs

Classification of import of (I) INTEL 200 MMX CPU BOX, (II) INTEL PII 233 CPU BOX - Claim of exemption / concessional rate of duty available to Integrated Circuits classifiable under CTH 8542.30 in terms of Sl. No. 205 of Notification No. 23/98-Cus - Department entertained a view that the said concession is not available to the importer as the product under assessment is new generation microprocessor for CPU of an automatic data processing machine. As such the classification was sought to be done under CTH 8473.30 denying the concession as claimed. Held that - present appeal does not contain any grounds for interfering with the concurrent findings of the lower authorities. - Pentium - II / Celeron Micro Processors are nothing but parts of computers classifiable under 8473.30 and not as a Populated Printed Circuit Board - Decided against the appellant.

Summary

Issues: Classification of imported goods under CTH 8473 or CTH 8542 for duty rate determination.

In this case, the appellant imported specific products and claimed a concessional rate of duty under CTH 8542.30. However, the department argued that the products should be classified under CTH 8473.30 as new generation microprocessors for CPUs, denying the claimed concession. The Commissioner (Appeals) and the department upheld this view, resulting in a differential duty demand. The appellant contended that the imported integrated circuits need to be mounted or embedded in a PCB to function, retaining their identity as hybrid integrated circuits, thus falling under CTH 8542. The department, on the other hand, maintained that the lower authorities correctly classified the products under CTH 8473. The appellate tribunal analyzed the technical aspects and concluded that the goods were assemblies designed for digital data processing machines, classifiable under CTH 8473, denying the exemption as integrated circuits. The tribunal found no grounds to interfere with the lower authorities' findings, citing a similar precedent where microprocessors were classified as parts of computers under CTH 8473.30. The tribunal dismissed the appeal, affirming the impugned order based on the detailed concurrent findings of the lower authorities.