2012 (8) TMI 142 - AT - Customs

Import of computer cases - Customs authorities denied the exemption on the ground that goods contain a USB card and hence a Populated Printed Circuit Board making the goods ineligible for the exemption Held that - What is contained in the computer case is an extension of PCB for ease of connection. But the same is not an electronic component or Populated PCB since it does not have active and passive electronic components like ICs, resistors, capacitors, relays, switches etc. - mere mounting of the USB port and audio port on a PCB does not make the PCB a Populated PCB - appellants are eligible for the impugned exemption under Notification No.21/2002

Summary

Issues: Interpretation of Notification No.21/2002 for exemption eligibility based on the classification of imported computer cases containing USB ports.

In this judgment by the Appellate Tribunal CESTAT, Chennai, the issue revolved around the interpretation of Notification No.21/2002 for exemption eligibility concerning imported computer cases with USB ports. The Customs authorities had denied the appellants the benefit of the notification, claiming that the computer cases contained USB cards, thus disqualifying them from the exemption.

The Tribunal examined the technical aspects of the imported computer cases, which featured USB ports and audio ports. The Customs authorities argued that the presence of a USB card made the goods ineligible for the exemption. However, upon scrutiny, it was found that the computer cases only had provisions for connecting USB cards, not actual USB cards. The Tribunal considered expert opinion from a Professor at IIT Kharagpur, who clarified that the components in the computer case were an extension of a Printed Circuit Board (PCB) for ease of connection, not a Populated PCB containing active and passive electronic components.

The Tribunal concluded that merely mounting USB ports and audio ports on a PCB did not transform the PCB into a Populated PCB. The technical analysis supported the view that the computer cases did not contain electronic components like ICs, resistors, capacitors, relays, or switches. Therefore, the Tribunal held that the appellants were eligible for the exemption under Notification No.21/2002. The impugned order was set aside, and the appeal was allowed, emphasizing the technical distinction between a PCB and a Populated PCB in the context of the imported computer cases.