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TMI Blog2006 (8) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... tegrated Circuits falling under CTH 8542.19. However, the Department proposed to classify the goods under CTH 8473.30 as parts of computers. In the case of the classification claimed by the appellant, the duty was 5%+0%+18%CVD+0%SAD. The rate of duty, if the goods are assessed as parts of computer, would be 20%+2%SCD+13%CVD+Nil SAD. The original authority relied on the amendment vide Notification 97/98-Cus., dated 27-11-1998 to Customs Notification No. 23/1998, dated 2-6-1998 wherein a new Sl. No. 187A had been inserted after Sl. No. 187 in the original Notification No. 23/98. This entry indicates the classification of Microprocessors under 8473.30. The original Authority held that for the period prior to issue of Notification 97/98, dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... based on the Chapter Notes of Chapter 84 and no evidence or technical literature is provided in support of such findings. (iv) The Commissioner (Appeals) has not correctly applied the exclusion clause provided in the HSN Notes to the Heading 8542 to come to the conclusion that the impugned goods do not fall under CH 8542. (v) The Adjudicating Authority failed to appreciate that the impugned goods are Hybrid Integrated Circuits and not PPCB (Populated Printed Circuit Boards). The Integrated Circuits cannot be used in a CPU/Computer unlike a PPCB. They need to be mounted or embedded on a PCB to make it functional and even after mounting, they retain the character and identity as an hybrid integrated circuit. (vi) The Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der CH 85.42 and further referred to our notice, the Chapter Note in Chapter 85 below 5(B) after (c), wherein it is mentioned that For the classification of the articles defined in this Note, Headings 8541 and 8542 shall take precedence over any other heading in this Schedule which might cover them by reference to, in particular, their function. The appellant pointed out that the Commissioner (Appeals) has not properly applied the exclusion clause below Heading 85.42 in the HSN to arrive at the conclusion that the impugned goods cannot be classified under CH 85.42. After going through certain technical literature, by Integrated Circuit , we mean that it is a small Microchip that contains a large number of electrical connections which per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations on large floating point numbers. A microprocessor can move data from one memory location to another. A microprocessor can make decisions and jump to a new set of instructions based on those decisions. (Reference : How Microprocessors Work by Marshall Brain). We have already seen that a Microprocessor chip contains millions of transistors on a piece of silicon. Hence, a Microprocessor is also an Integrated Circuit. However, a Microprocessor is meant to perform the processing of arithmetical and logical functions of a computer. In other words, it is the heart of the CPU of a computer. That is one of the reasons that the Microprocessor is classified under 8473.30 in the Notification 97/98. Even though, Microproce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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