1996 (7) TMI 364 - AT - Central Excise

Summary

Issues: Differentiation between "populated printed circuit board" and "printed circuit board" for the purpose of exemption under Notification No. 74/85.

In this case, the department appealed against the Collector (Appeals) order, challenging the differentiation made between "populated printed circuit board" and "printed circuit board" under Notification No. 74/85. The respondents claimed to be manufacturing only "unpopulated circuit boards" exempt under the notification. The Assistant Collector contended that the respondents were manufacturing "populated printed circuit boards," thus not eligible for the exemption. However, the Collector (Appeals) overturned this decision, stating there was no distinction between the two types of boards.

The learned SDR for the appellants argued that "printed circuits" involve forming conductor elements on an insulated base, and by assembling components like transistors on "unpopulated printed circuit boards," they become "populated printed circuit boards." The SDR emphasized the distinction between the two types of boards and asserted that the respondents were manufacturing "populated printed circuit boards," making them ineligible for the exemption. The SDR requested the appeal to be allowed, as no representation was made by the respondents.

Upon reviewing the case records and submissions, the tribunal noted that Notification No. 74/85 exempts only "printed circuit boards" and "unpopulated printed circuit boards." The central issue was whether the addition of components like capacitors and transistors transformed a board into a "populated" circuit board or retained its classification as a "printed" circuit board. The tribunal clarified that a "printed" circuit board consists of an insulated board with conductors laminated on it, without external materials affixed. By adding components like resistors and capacitors, the board transitioned into a "populated printed circuit board." The tribunal concluded that the respondents' boards were indeed "populated printed circuit boards," falling outside the exemption for "unpopulated circuit boards" under the notification.

The tribunal disagreed with the Collector (Appeals)' finding that there was no distinction between a "printed circuit board" and a "populated printed circuit board," deeming it technically unsound. Consequently, the tribunal held that since the respondents were manufacturing "populated printed circuit boards," they were not entitled to the benefit of Notification No. 74/85, and thus allowed the appeal in favor of the department.