CVD exemption for imported cooling fans and heat sinks upheld as integral parts of an exempt microprocessor composite unit.

Cooling fans and heat sinks imported with a microprocessor were treated as integral, fully integrated parts of a single composite unit. Because the microprocessor was classifiable under tariff heading 84733010 and the notification extended exemption to microprocessors of computers under Chapter headings 84.71 or 84.73, the parts were covered as components of the exempt microprocessor. The Revenue's objection to CVD exemption was rejected, and the exemption was upheld.

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Issues: Whether cooling fans and heat sinks imported along with a microprocessor were eligible for exemption from payment of CVD under Notification No. 6/2002-C.E.

Analysis: The goods were found, on the basis of literature and the record, to be integral parts of the microprocessor and to be fully integrated with it as a single composite unit. Since the microprocessor was classifiable under tariff heading 84733010 and the notification extended exemption to microprocessors of computers falling under Chapter headings 84.71 or 84.73, the goods in question were treated as parts of the exempt microprocessor for computers other than mother boards. The Revenue's objection to the grant of exemption was therefore not accepted.

Conclusion: The exemption from CVD was correctly extended to the imported cooling fans and heat sinks, and the Revenue's appeal failed.

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