1996 (10) TMI 250 - AT - Customs

Summary

Issues: Classification of imported spare parts for CNC Wire cut machine, specifically populated printed circuit boards.

In the case before the Appellate Tribunal CEGAT, New Delhi, the appellant imported spare parts for a CNC Wire cut machine, including populated printed circuit boards, Cassette Discs, and Triac Assemblies. The dispute centered around the classification of the populated printed circuit boards. The appellant argued that these circuit boards should be classified as parts of a numerical panel under Heading 85.38, referring to HSN notes and a Tariff Advice issued by Madras Custom House. On the other hand, the Revenue contended that the imported goods were parts of a data processing unit and not numerical control panels under Heading 85.37, as they did not include apparatus for controlling and distributing electricity. The Tribunal examined Heading 85.37, emphasizing that it covers panels equipped with apparatus for electrical control or distribution, and concluded that the imported circuit boards, intended to function as a data processing machine when connected to other parts, should be classified as parts of a data processing unit under Heading 84.73, not as parts of a machine incorporating an automatic data processing system under 84.71. The Tribunal also referenced Chapter Note 5(b) and Section Note 2(a) of Section XVI to support this classification. Consequently, the Tribunal upheld the original order and dismissed the appeal. The judgment provides a detailed analysis of the classification criteria and the specific functions of the imported spare parts in relation to data processing units, ultimately determining their correct classification under the Customs Tariff Act, 1975.