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Issues:
Classification of imported product under Chapter Sub-heading 9027.90 read with Heading 98.06 of Customs Tariff Act, 1975 versus Chapter Sub-heading 8473.30 of the Customs Tariff Act, 1975 and Countervailing duty under Chapter Sub-heading 8473.00 of the Central Excise Tariff Act, 1985. Analysis: The appeal before the Appellate Tribunal CEGAT, New Delhi involved a dispute regarding the classification of imported CPU Board, declared as spare parts for Atomic Absorption Spectrophotometer. The appellants argued that the CPU Board should be classified under Chapter Sub-heading 9027.90 with Heading 98.06, while the authorities classified it under sub-heading 8473.30 with Countervailing duty under sub-heading 8473.00. The appellants contended that the CPU Board was an integral part of the spectrophotometer, essential for processing information, and should be classified accordingly. They relied on the manufacturer's service manual describing the function of the product as a data processor within the spectrophotometer. They argued that the CPU Board's function aligned with the purpose of a spectrophotometer, which is to obtain accurate results from spectral data. The appellants also cited Chapter Note 2(a), 2(b), and 2(c) of Chapter 90 to support their classification claim under Chapter 90. They further referenced relevant notifications for concessional duty rates applicable to their classification. The appellants emphasized that the CPU Board was essentially a printed circuit board falling under Heading 85.34 and should be classified under Chapter 90. The Respondent, represented by the ld. SDR, argued that the imported CPU Board functioned as a data processing unit, distinct from the main function of a spectrophotometer, which is a measuring instrument. The Respondent contended that the CPU Board should be classified under Chapter 84 as a part of an automatic data processing machine, not as an accessory of the spectrophotometer. They supported the lower authorities' classification under sub-heading 8473.30 for Customs duty and sub-heading 8473.00 for Countervailing duty. The Respondent emphasized the need to examine the specific function and classification guidelines under Chapter 90 to determine the appropriate classification of the imported product. Upon hearing both sides, the Tribunal analyzed the manufacturer's service manual, which clearly indicated that the CPU Board imported by the appellants functioned as a data processor within the spectrophotometer. The Tribunal referred to Chapter Notes 2(a), 2(b), and 2(c) of Chapter 90 and the specific entries under Chapter Heading 90.27 to assess the classification claim. The Tribunal observed that the CPU Board performed a distinct function of processing data from the photomultiplier, making it a part of the automatic data processing machine under Chapter 84. The Tribunal concluded that since the CPU Board was not specifically mentioned under Chapter 90, it should be classified under Chapter 84, specifically under sub-heading 8473.30 for Customs duty and 8473.00 for Countervailing duty. The Tribunal rejected the appeal and upheld the lower authorities' classification decision. In summary, the Tribunal's decision focused on the distinct function of the imported CPU Board within the spectrophotometer, leading to its classification under Chapter 84 rather than Chapter 90 as claimed by the appellants. The judgment emphasized the importance of analyzing the specific function and classification guidelines to determine the appropriate classification of imported goods.
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