2017 (8) TMI 205 - AT - Customs

Classification of imported goods - CD Rom drive - classified under CTH 84717060 or under sub-heading 84717090 - N/N. 6/2002-CE dated 01/03/2002 - Held that - law is well settled that grant of the notification calls for coverage of goods strictly within the scope of the entry embracing the goods within its fold - In the present case the appellant imported CD-RW of different specifications, which is the storage device falling under heading 84717090. The family of CTH 8471.70 comprise seven goods of the nature described therein from CTH 84717010 to 84717060. CD-Rom drive is only eligible to exemption under the notification aforesaid. This being a specific grant, its scope cannot be expanded to cover an alien within its fold. The appellant fails to succeed because of the specific coverage of prescribed goods by the notification not covering the goods imported. Therefore, CD Rom being distinguishable by its very existence in the CTH 84717090 from 84717060 - appeal dismissed - decided against appellant.

Summary

Issues:
Classification of imported goods under CTH 84717060 for exemption of additional duty of Customs based on Circular No.55/2001-Cus dated 19/10/2001.

Analysis:
The appellant claimed exemption of additional duty of Customs for importing CD-RW 52x32x52 GOR5232A LIT by classifying it under CTH 84717060, asserting it to be a CD Rom drive entitled to exemption under Circular No.55/2001-Cus. The appellant argued that CD-RW falls under sub-heading 84717090, which is for storing data and should be classified under 84717060. Referring to Notification No.6/2002-CE, the appellant highlighted the exemption allowed for specified goods, including CD-ROM drives, under entry 261A of the Table appended to the notification.

The Tribunal considered the appellant's reliance on a previous decision granting benefit under the same notification to goods classified as storage devices. The appellant also argued that if an item is specifically mentioned in the CTH with reference to its main function, it should be entitled to the benefit, even if it can perform multiple functions. However, the Revenue contended that the exemption was limited to CD-Rom or RW drives under CTH 84717090 and not applicable to the CD-RW imported by the appellant, as it did not align with entry 261A of the notification.

Upon examination, the Tribunal noted the specific classification of goods under CTH 84717060 for CD-ROM drives, distinct from the broader category of storage devices under 84717090. Emphasizing that the grant of exemption must strictly align with the goods covered by the entry, the Tribunal held that the appellant's imported CD-RW did not fall within the specific scope eligible for exemption under the notification. As CD Rom drives were distinguishable by their classification under 84717090 from 84717060, the Tribunal dismissed the appeal based on the specific coverage prescribed by the notification.

Given the clear and specific findings, the Tribunal deemed it unnecessary to delve into the circular and other citations provided by the appellant. The Tribunal underscored that the specific grant of exemption under the notification excluded goods not falling within its defined scope, emphasizing the importance of aligning imported goods with the precise description outlined in the notification for exemption eligibility.