2004 (4) TMI 184 - AT - Customs

Summary

Issues:
Classification of imported CPU cooling fans under sub-heading 8473.30 or sub-heading 8414.59 of the Customs Tariff Act.

Analysis:
The appeal revolves around the classification of CPU cooling fans imported by M/s. Quantum Hi-tech Merchandising. The primary issue is whether these fans should be classified under sub-heading 8473.30, as claimed by the appellants, or under sub-heading 8414.59, as confirmed by the Commissioner (Appeals) in the impugned order.

The appellant's representative argued that the CPU cooling fan is an essential part of the automatic processing machine, without which the computer cannot function. Referring to the HSN Explanatory Notes, it was contended that the impugned goods are parts suitable for use solely or principally with the CPU, falling under Heading 84.73. The argument also relied on Note 2(a) to Section XVI of the Customs Tariff Act, which specifies that parts falling under Heading No. 84.73 will always be classified under that heading. Additionally, it was highlighted that the impugned goods were classified under Heading No. 84.73 at other Customs Houses.

In response, the Departmental Representative contended that the CPU cooling fan is simply a fan for cooling the Central Processing Unit, classifiable under Heading 84.14. Referring to Note 2(a) to Section XVI of the Tariff, it was argued that parts which constitute an article covered by a Heading of Chapter 84 are to be classified in their respective Heading, i.e., 8414.59 in this case.

Upon considering the arguments, the Tribunal noted that Heading 84.14 covers fans, with sub-heading 8414.59 applying to 'other' fans. The Tribunal observed that the impugned goods, being fitted with additional elements like a heat sink, are excluded from the purview of Heading 84.14 as per the HSN Explanatory Notes. It was also acknowledged that the impugned goods are suitable for use principally with the CPU, falling under Heading 84.71. In light of Note 2(b) to Section XVI of the Tariff, which dictates that impugned goods are to be classified along with the machine, the Tribunal held that the goods should be classified under sub-heading 8473.30. Consequently, the appeal was allowed, ruling in favor of the appellant.