9911796707
TMI Blog2006 (11) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... . They had claimed classification of the goods under CTH 847150.00 and sought exemption under Central Excise Notification No. 6/2002 (Sl. No. 261) as amended by the Central Excise Notification No. 23/2004 dated 9-7-2004. Further concessional Additional Duty under Section 3(3) of CTA on CPU, vide Sl. No. 1 of the Notification No. 76/2004 dated 26-7-2004 was also claimed to be applicable. It was found that "HP SUPERDOME SERVER SYSTEM SOLUTIONS" have been imported without main storage/permanent storage unit like Hard Disc Drives. Relying on HSN Explanatory Notes and the Technical Information from one Dr. C. Rao, the Group Chairman of M/s. United Telecom Group, the Revenue held that the impugned item cannot be classified under CTH 847150.00 nor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Digital Data Processing machines as per HSN Explanatory Notes could be read to visualize the following situations :- (a) The arithmetic, logical control elements and the main storage are in the same housing; (b) The arithmetic, logical control elements are inside the housing and the main storage is outside the housing. The appellants submits that the arithmetic and logical element normally refer to the control element that locates, analyses and executes each instruction in the program and that by nature these elements cannot be outside the housing. This contention is not disputed by the Department also. The issue therefore narrows down to what is meant by "Main Storage" and whether the main storage is inside t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not supported by other notes in Heading 8471 in the HSN. In the HSN as well as under Chapter Note 5 (A) of Chapter 84, digital data processing machines of sub-heading 8471.50 are those capable of storing the processing programme or programmes and at least the date immediately necessary for the execution of the programme. It is understood that the main storage can consist not only of HDD but also Random Access Memory (RAM) or even the microprocessor which can accommodate enough memory to store processing programme and the data immediately necessary for the execution of the programme. Common interpretation of CPU is as a processor or Central Processor and in common parlance it is not supposed to contain the hard disc drive as an essential con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be classified under CTH 84715000. It is therefore, submitted that the classification of the server imported with an external Hard Disk Array is rightly classifiable under this heading, then the presence of the storage outside, assuming without accepting that the hard disk which is located outside is to be considered as the main storage, it would still be considered as a Digital Processing Unit or a computer and would be therefore eligible for the benefit of the Notification No. 6/2002-C.E. dated 1-3-2002. 5.The learned JDR while reiterating the findings in the impugned order, urged that without the hard disk, the computer cannot function and the Central Processing Unit is incomplete without the hard disk. 6.We have gone through the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries such as monitor, key board, mouse, modem, uninterrupted power supply system, or web camera cleared separately." The Revenue has denied the benefit of Notification on the ground that the exemption in respect of Central Processing Unit (CPU) is not available to the imported Servers and consequently CVD @ 16% is to be paid. The HSN Explanatory Notes explain that the Central Processing Unit would generally incorporate the main storage, the arithmetic and logical elements and the control elements. According to the Revenue, the main storage refers to the hard disc which is outside the housing and therefore, the exemption is not available. In this connection, the appellant produced a draft Circular which appeared in 'taxindiaonline'. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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