2006 (8) TMI 368 - AT - Customs

Imported Microprocessors Classified as Computer Parts, Not Integrated Circuits

The Tribunal upheld the classification of imported Pentium-II/Celeron Microprocessors under CTH 8473.30 as parts of computers, rejecting the appellant's ... Classification Issues:Classification of imported Pentium-II/Celeron Microprocessors under Integrated Circuits or as parts of computers.Analysis:The appeal was filed against an order passed by the Commissioner of Customs (Appeals), Bangalore, regarding the classification of imported Pentium-II/Celeron Microprocessors. The appellants classified the goods under Integrated Circuits (CTH 8542.19), while the Department proposed classifying them under parts of computers (CTH 8473.30). The original authority relied on a notification to classify the goods under CTH 8473.30 for the period before a specific amendment. The Commissioner (Appeals) upheld this classification based on relevant chapter notes and exclusion clauses.The appellant's counsel argued various points, including technical evidence supporting the classification as Integrated Circuits, reliance on chapter notes favoring CTH 8542, and the distinction between Hybrid Integrated Circuits and Populated Printed Circuit Boards (PPCB). The counsel contended that the impugned goods should be classified under CTH 8542 as Integrated Circuits.The Revenue's representative referred to a previous decision by the Tribunal classifying similar Microprocessors under CTH 8473.30. The Tribunal examined technical aspects, including the nature of Microprocessors, their functions, and their integral role in computers. The Tribunal noted the evolution of Microprocessors, their functionality, and their classification as parts of computers in the Customs tariff. Ultimately, the Tribunal rejected the appeal and upheld the classification under CTH 8473.30 based on the specific application of Microprocessors in computers.In conclusion, the Tribunal affirmed the classification of the imported Pentium-II/Celeron Microprocessors under CTH 8473.30 as parts of computers, rejecting the appellant's claim for classification under CTH 8542 as Integrated Circuits. The decision was based on the specific functions and applications of Microprocessors in computers, as well as the prevailing Customs tariff classification and a previous Tribunal ruling on similar goods.