9911796707
TMI Blog2025 (2) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 232 - CESTAT, MUMBAI] holding that Mother Boards and Add-on Cards are classifiable under Chapter Heading 8473 of the Central Excise Tariff Act, 1985. The Tribunal, Mumbai has held that 'The add-on card and motherboard cannot be considered as automatic data processing machines. The same are parts and accessories suitable for use with the machine falling under Heading 84.71 of the Tariff. In view of the above, as the goods in question are parts and accessories of the data processing machine falling under Heading 84.71 of the Tariff, therefore being parts and accessories are classifiable under Heading 8473 of the Tariff.' The appeal is rejected upholding the classification of Add-on Cards under Chapter Heading 8473 of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts viz., 'Add-on Card' would be correctly classifiable under Chapter sub-heading 8473.00 attracting Central Excise Duty @20%. Therefore, the Show Cause Notice dated 30.03.1995 was issued to the Appellant proposing to re-classify the goods under Chapter 8473 and demanding differential duty of Rs.3,66,669/- on Add-on Cards cleared by the Appellant during the period from October 1994 to February 1995. 2.2 After due process of the law, the Ld. Adjudicating Authority vide Order-in-Original No. 78/2001 dated 10.12.2001 had dropped the entire proceedings. The Department felt that dropping of the demand was not legal and proper and hence filed an appeal with the Commissioner (Appeals) who vide Order-in-Appeal No. 127/2003 (P)(D) dated 05.11.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the decisions in the cases of Vintron Electronics P. Ltd. Vs. Commissioner of Central Excise, New Delhi [2012 (279) ELT 161 (SC)] which remanded the issue to the Tribunal and in Commissioner of Central Excise, Mumbai-II Vs. Virtual Computers Pvt. Ltd. [2013 (292) ELT 478 (Tri.-Mum.)]. Another plea submitted by the Ld. Advocate was that no interest could be demanded on this duty as interest provisions came into effect from 26.05.1994. He has further submitted that as the issue involved is of interpretation of classification of the product, which is technical in nature, no penalty is imposable. 4. The Ld. Authorised Representative Shri Anoop Singh has affirmed the findings in the impugned order dated 31.05.2016 and stated that the issue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the appeal of the Department. 8. The issue regarding the classification of Add-on Cards is no more res integra in view of the decision passed by the Tribunal, Mumbai in the case of Commissioner of Central Excise, Mumbai-II Vs. Virtual Computers Pvt. Ltd. [2013 (292) ELT 478 (Tri.-Mum.)] holding that Mother Boards and Add-on Cards are classifiable under Chapter Heading 8473 of the Central Excise Tariff Act, 1985. The Tribunal, Mumbai has reasoned as below on the appropriate classification of the Add-on Cards: - "2. The appeal is being taken up in view of the remand order dated 11.2.2012 passed by the Hon'ble Supreme Court in Civil Appeal No. 3560 of 2007. 3. The issue involved in this appeal is regarding classification of motherboard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ories are classifiable under Heading 8473 of the Tariff. 7. The impugned order is set aside and the appeal filed by the Revenue is allowed." 9. After appreciating the facts as above and in compliance to the judicial discipline, the appeal is rejected upholding the classification of Add-on Cards under Chapter Heading 8473 of the Central Excise Tariff Act, 1985. As such demand of duty is confirmed. No interest is payable as the provision for payment of interest in terms of Section 11AB of the Central Excise Act, 1944 is applicable from 28.09.1996. 10. However, we find that the Lower Appellate Authority in his order dated 31.05.2016 has imposed a penalty of Rs.10,000/- under Rule 173Q of the Central Excise Rules, 1944. 11. After consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
