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of <h1>Tribunal reclassifies computer parts under tax heading, overturns Commissioner's decision.</h1> <h3>Commissioner of Central Excise, Mumbai II Versus Virtual Computers Pvt Ltd</h3> The Tribunal classified the motherboard and add-on card under Heading 8473 as parts and accessories of the data processing machine under Heading 84.71, ... Classification of motherboard and add on card - Held that:- Add-on card and motherboard cannot be considered as automatic data processing machines. Same are parts and accessories suitable for use with the machine falling under Heading 84.72. As the goods in question are parts and accessories of the data processing machine falling under Heading 84.71, therefore being parts and accessories are classifiable under Heading 8473 of the Tariff. Appeal of Revenue allowed. Issues: Classification of motherboard and add on card under Central Excise TariffClassification of goods:The main issue in this appeal was the classification of motherboard and add-on card under the Central Excise Tariff. The Commissioner (Appeals) classified the goods under Heading 8471, while the Revenue argued for classification under Heading 8473. The Tribunal analyzed the nature of the goods, highlighting that the add-on card enhances features by connecting to the motherboard, which acts as the central printed circuit board of the computer. The Tribunal referred to the relevant sub-headings in the Central Excise Tariff, noting that Heading 8471 covers automatic data processing machines, while Heading 8473 pertains to parts and accessories suitable for use with specific machines.Interpretation and decision:After considering the arguments and definitions, the Tribunal concluded that the add-on card and motherboard do not qualify as automatic data processing machines but rather as parts and accessories suitable for machines falling under Heading 84.72 of the Tariff. Therefore, the goods in question were classified under Heading 8473 as parts and accessories of the data processing machine under Heading 84.71. Consequently, the impugned order was set aside, and the appeal filed by the Revenue was allowed. The judgment clarified the distinction between the classifications and provided a detailed analysis based on the Central Excise Tariff provisions and the nature of the goods in question.
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