1999(03)LCX0147

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri G.A. Brahma Deva, Member (J) and V.K. Agrawal, Member (T)

HINDUSTAN PETROLEUM CORPN. LTD.

Versus

COLLECTOR OF CUSTOMS, CHENNAI

Final Order No. 50/99-B2, dated 10-3-1999 in Appeal No. C/2237/91-B2

Advocated By : Shri P.S.N. Murthy, Senior Manager (Finance), for the Appellant.

Shri S. Ramanathan, JDR, for the Respondent.

[Order per : V.K. Agrawal, Member (T)]. - The issue involved in this appeal is the classification of CRT display unit (Sl. No. 3 in bill of entry) Arithmetical control card, memory card, HF bus control card, (Sl. No. 7) and panel control card, Arithmetic logic card, graphic display interface card (Sl. No. 8) imported by M/s. Hindustan Petroleum Corporation Limited.

2. Shri P.S.N. Murthy, Senior Manager - Finance of the appellants fairly conceded that CRT display unit, at Sl. No. 3 of the bill of entry in question, is a complete machinery and its assessment done under Heading 8540.89 read with Heading 98.06 by the department is agreeable. In respect of Sl. No. 7 of the bill of entry, he submitted that these are printed circuit board meant for main machine automatic regulation and control machine falling under Heading 90.32 of the schedule to the Customs Tariff. Referring to Chapter Note 2 of Chapter 90, he submitted that PCBs are specifically covered by Heading 85.42 of the Tariff and as such they cannot be classified as per under Heading 9032.90 of CTA. In respect of goods at Sl. No. 8 of the bill of entry he reiterated his contention made in respect of Sl. No. 7. In alternative, he submitted that as these goods covered by Sl. No. 8 of the bill of entry are also parts of the main machine falling under Heading 90.32, the parts are classifiable along with the machine under sub-heading 9032.90 and not under sub-heading 8473.30 as classified by the department.

3. Countering the arguments, Shri S. Ramanathan, learned JDR submitted that Heading 8542 is applicable only in respect of electronic integrated circuit and micro assembly and does not cover populated PCB which are sub-assemblies. As these are parts of main machine which falls under Chapter 90 of the Customs Tariff Act the parts covered by Sl. No. 7 of bill of entry will be classified along with the main machine. He further mentioned that goods at Sl. No. 8 are parts of the data processing unit and accordingly will be classifiable under sub-heading 8473.30.

4. We have carefully considered the submissions made by both the sides. As far as the CRT display unit is concerned the classification ordered by the department is not now in dispute by the appellants and therefore this part of the impugned order is confirmed. We observe that the Collector (Appeals) in the impugned order has given a clear finding that 85.42 covers only integrated circuit (individual IC) and not sub-assemblies (populated PCB) to an equipment. He, therefore, concluded that as the items under dispute were in the nature of sub-assemblies they are classifiable under Heading 8473.30. The appellants have not adduced any evidence or technical literature to controvert the findings of the Collector (Appeals) in the impugned order. They have not shown that the populated PCBs are classifiable under Heading 85.42 of CTA. According to Note 2 to Chapter 90 parts and accessories if suitable for use solely or principally with a particular kind of machines are to be classified with the machine itself. Accordingly, we find no infirmity in respect of classification of goods at Sl. No. 7 under Heading 9032.90 as admittedly these are parts of the machine which fall under Chapter 90. In respect of goods at Sl. No. 8 of bill of entry, we are not agreeing with the submission of learned JDR that these are parts of date processing machine alone and should be classified under sub-heading 8473.30. It is not disputed by the learned JDR that these parts are being used by the appellants in the machine which falls under Chapter 90 and as per Note 2 to Chapter 90 these parts are also classifiable under sub-heading 9032.90. The appeal is thus disposed of in the above terms.

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Equivalent 1999 (107) ELT 622 (Tribunal)

Equivalent 1999 (032) RLT 0027