Thin client exemption claim for CPU without hard disc drive supported by Board position and precedent

A thin client was treated as having a prima facie claim to exemption or concessional duty as a computer or CPU without hard disc drive, because it was described as capable of receiving, processing, storing and disseminating electronic data. The Tribunal relied on the Board's acceptance that a CPU without HDD could still fall within the relevant exemption notification, together with a supporting circular and earlier tribunal precedent. On that basis, it found sufficient interim merit to waive pre-deposit and stay recovery of duty and penalty.

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Issues: Whether the assessee had made out a prima facie case for waiver of pre-deposit and stay of recovery of duty and penalty on the ground that the product, a thin client, was eligible for exemption/concessional duty as a computer or CPU without hard disc drive.

Analysis: The product was described as capable of receiving, processing, storing and disseminating electronic data, and the dispute centered on the absence of a hard disc drive. The Tribunal noted that the Board had accepted the position that a CPU without HDD could still qualify for the benefit of the relevant exemption notification, and that the cited circular and earlier tribunal decision supported the assessee's stand. On that basis, the assessee's product was regarded as having a prima facie case for the exemption claim at the interim stage.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in respect of the duty and penalty demands.

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