2018 (4) TMI 822 - AT - Central Excise

Benefit of N/N. 12/2012-CE. - Hard Disk Drives - benefit denied by classifying the goods under Heading No.84717030 as Removable or Exchangeable Disc Drive - Held that - the very same dispute came before the Tribunal in Supertron Electronics Pvt. Ltd. 2017 (1) TMI 1529 - CESTAT NEW DELHI , where it was held that The terms hard disk drive used in the notification has not been amplified either by adding external or internal . On this simple premise alone, exemption to the said item cannot be denied - benefit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of imported goods under CTH 84717020 vs. 84717030 for concessional rate of CVD under Notification no.12/2012 - CE.

Analysis:
The appellant imported goods described as "Hard Disk Drives" under CTH 84717020 seeking a concessional rate of CVD under Notification no.12/2012 - CE. Customs Authorities contended that the goods should be classified under Heading No.84717030 as "Removable or Exchangeable Disc Drive," denying the benefit of the notification. The Original Authority and the first Appellate Authority upheld this view, leading to the appellant paying differential duty after denial of the exemption.

The appellant's counsel referred to a similar case before the Tribunal involving the correct classification of external disc drives under the same notification, where the Tribunal confirmed the Commissioner (Appeals)'s views. The Tribunal's decision was later upheld by the Supreme Court, emphasizing that the samples produced were external hard disc drives with plug-and-play functionality, usable interchangeably in laptops or computers.

The lower authorities relied on technical specifications to support the classification under Heading No.84717030, as per the Revenue's view. However, upon examining the samples in court, the Tribunal noted the previous decision in Supertron Electronics Pvt. Ltd. case. The Tribunal emphasized that the exemption notification covered both hard disk drives and removable or exchangeable disk drives under the same tariff heading, without specifying "external" or "internal." Based on technical specifications, expert opinions, and factual findings, the Tribunal concluded that the imported items were hard disk drives meant for external use, not removable or exchangeable disk drives as contended by the Revenue.

Considering the previous Tribunal decision upheld by the Supreme Court and the technical analysis presented, the Tribunal set aside the impugned order, allowing the appeal and dismissing the Revenue's claim.