2007(08)LCX0263

In the Customs, Excise & Service Tax Appellate Tribunal, Bangalore

Dr. S.L. Peeran, Member (Judicial) and Shri T.K. Jayaraman, Member (Technical)

Commissioner of Central Excise & Customs, Hyderabad-II

Versus

Tata Consultancy Services Ltd.

Final Order No. 936/2007 dt. 13.8.2007 certified on 21.8.2007 in Appeal No. C/144/2007

Cases Quoted -

Departmental Clarifications Quoted

Circular No. 105/2003 dt. 16.12.2003 issued by CBEC [reported in 2003 (059) RLT M101] [Para 3]

Advocated By -

Mrs. Sudha Koka, SDR for Appellant
Shri Vipin Jain, Consultant for Respondent

Per Dr. S.L. Peeran :

This is a Revenue appeal against Order-in-Appeal No. 46/2006-Cus. dated 15.9.2006 holding that the imported item under the Bill of Entry No. 146446 dated 10.4.2006 under the description "Storage devices - Hard Disk" is rightly classified under CTH No. 84717020 and eligible for the benefit of Notification No. 6/2006-C.Ex. The finding recorded in Para 10 is relevant and the same is reproduced herein below:

10. The appellants contended that they are eligible for exemption under Notification No. 6/2006-CE Dt. 1.3.2002, since the item imported by them was a hard disk drive only and irrespective of the sub-heading in which the hard disk drive was classifiable, the exemption contained in Notification 6/2006-CE Dt. 1.3.2006 could not be denied. As per item No. 17 of Notification No. 6/2006-CE Dt. 1.3.2006, the goods at Sl. No. (c) Hard Disk Drives is exempted from payment of duty. Since the impugned goods imported from payment of duty under Notfn. No. 6/ 2006-CE Dt. 1.3.2006 and the appellants are eligible for claiming the exemption. Hence, the order passed by the lower adjudicating authority is liable for set aside. Accordingly, I pass the following order.

ORDER

The impugned goods imported by the appellants are classified under CTH 84717020 and they are eligible for the benefit of the Notification 06/2006-C.Ex. to this Import. The order passed by the Assistant Commissioner is set aside and the appeal filed by the appellants is allowed with consequential relief.


2. The Revenue contends that the imported item is Array of Hard Disk which requires to be classified under the Residuary Sub Heading No. 87717090. It is further submitted that the Notification is only for Hard Disk Drives and not for 'Storage Disk Array'. For Hard Disk Drive, the benefit has been wrongly granted by the Commissioner (A).


3. The learned JDR pointed out to Board's Circular No. 105/1003 dated 16.12.2003 [reported in 2003 (059) RLT M101], which on our scrutiny find that the said Circular does not pertain to this item specifically but only refers to storage disk array. Be that as it may, the learned Counsel submitted that from the Notification in question in Sl. No. 17, the Tariff Heading mentioned is 847170 or 847330 and in Column 3 - (c) - Hard Disk Drive is mentioned. He submits that the main Heading of the Tariff is mentioned in the Column 2 and there is no bifurcation made with regard to the Sub Heading 84717020 or 84717090. All the items falling under 847170 are eligible for the benefit and there is no exclusion to 84717020 or 84717090. He submits that the Commissioner (A) has allowed the benefit on these terms.


4. On a careful consideration of the Notification in question, it is clear from Column 2 that the goods falling under 847170 are entitled for the benefit. There is no bifurcation made to the goods falling under Sub Headings of 84717020 or 84717090. There is no dispute that the item is a Hard Disk Drive, therefore, mere fact that the Hard Disk Drive have been imported in array will not disentitle them from classification under Heading 847170 irrespective of the sub heading. Therefore, the order passed by the Commissioner (A) is legal and proper. There is no merit in this appeal and the same is rejected.

Operative portion of this Order was pronounced in open Court on conclusion of hearing.

Equivalent 2007 (083) RLT 0822 (CESTAT-Ban.)

Equivalent 2008 (221) ELT 0217 (Tri. - Bang.)