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2017 (1) TMI 346 - AT - CustomsBenefit of N/N. 6/2006 - classification of imported memory cards - whether classified under CTH 8523 51 00 as Solid State Non-volatile Storage Devices or under CTH 8523 52 20 as memory smart cards - Held that - the issue involved in the present appeals has been clarified by the Board by issuing Circular No. 12/2012, dated 1-5-2012 vide which the Board has clarified that Micro/Mini SD Cards are correctly classified in Sub-heading 8523.51 as Semiconductor media, solid-state, non-volatile data storage devices by application of General Rules for Interpretation of Import Tariff (GRIs) 1 - Micro SD/Mine storage cards are classifiable under CTH 8523.51 as non-volatile storage devices and the assessees are entitled to the benefit of exemption Notification No. 6/2006 - appeal dismissed - decided against Revenue.
Issues:
1. Classification of imported goods under CTH 8523 51 00 as Solid State Non-volatile Storage Devices with benefit of exemption of CVD under Notification No. 6/2006. 2. Dispute regarding whether the imported goods are Memory cards or flash Memory Cards. 3. Interpretation of technical literature and Chapter Note 4(b) of Chapter 85 for classification. 4. Appeal by Revenue against the decision of Commissioner (Appeals) regarding classification of Memory Cards as smart cards under sub-heading 8523 52 20. 5. Clarification by the Board through Circular No. 12/2012 regarding classification of Micro/Mini SD Cards under CTH 8523.51 as Semiconductor media, solid-state, non-volatile data storage devices. Analysis: 1. The case involved the classification of imported goods by M/s. Anandit Infotech under CTH 8523 51 00 as Solid State Non-volatile Storage Devices with the benefit of exemption of CVD under Notification No. 6/2006. The assessing officer initially classified the goods under CTH 8523 52 20, denying the benefit of 'Nil' rate of CVD. The Commissioner of Customs (Appeals) allowed the appeal of the assessee, holding that the goods were rightly classifiable under CTH 8523 51 00 based on technical literature and granted the benefit of the exemption Notification No. 6/2006. The Revenue appealed against this decision. 2. The dispute centered around whether the imported goods were Memory cards or flash Memory Cards. The Commissioner (Appeals) based the classification on the technical literature, stating that the Trancend SD series memory cards were Non-volatile Storage devices, not smart cards. The cards were found to be embedded with NAND Flash chip, which made them ineligible to be classified under the sub-heading of Smart Card. The Revenue contended that the Memory Cards were smart cards and should be placed under a specific sub-heading under 8523 52 20. 3. The interpretation of technical literature and Chapter Note 4(b) of Chapter 85 played a crucial role in determining the classification of the imported goods. The Commissioner (Appeals) relied on the technical characteristics of the cards, such as being embedded with Flash Memory, to support the classification under CTH 8523 51 00 as Non-volatile Storage devices instead of smart cards under 8523 52 20. 4. The Revenue filed the present appeals challenging the decision of the Commissioner (Appeals) regarding the classification of Memory Cards as smart cards under sub-heading 8523 52 20. However, the Board had issued Circular No. 12/2012 clarifying the classification of Micro/Mini SD Cards under CTH 8523.51 as Semiconductor media, solid-state, non-volatile data storage devices. The learned AR conceded that the cards were classifiable under CTH 8523.51 based on the Circular, and the assessees were entitled to the benefit of exemption Notification No. 6/2006. 5. The Board's Circular No. 12/2012 provided clarity on the classification of Micro/Mini SD Cards as Semiconductor media, solid-state, non-volatile data storage devices under CTH 8523.51. The Circular emphasized the compliance of the cards with the definitions of printed circuits and the application of General Rules for Interpretation of Import Tariff, leading to the dismissal of the Revenue's appeals based on the clarified classification provided in the Circular.
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