Microprocessor classification under customs exemption sustains concessional duty benefit and defeats reclassification-based demand.

Imported microprocessors were treated as parts of automatic data processing machines rather than populated printed circuit boards, so the concessional duty benefit under Notification No. 23/98-Cus. dated 02.06.1998 was available. The Tribunal followed its earlier view on the same classification issue, treating the matter as no longer res integra, and noted that the department's civil appeal had been dismissed by the Supreme Court. On that basis, reclassification could not support the demand, and the exemption remained applicable to the imported goods.

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Issues: Whether imported microprocessors were correctly classifiable as parts of automatic data processing machines and entitled to the concessional rate of duty under Notification No. 23/98-Cus. dated 02.06.1998.

Analysis: The imported goods were held in earlier decisions to be microprocessors and not populated printed circuit boards. The Tribunal followed its prior view that such goods fell to be treated as parts of automatic data processing machines and that the exemption under the notification was available. The issue was treated as no longer res integra in view of the earlier Tribunal decision and the dismissal of the department's civil appeal by the Supreme Court.

Conclusion: The imported goods were eligible for the benefit of Notification No. 23/98-Cus. dated 02.06.1998, and the demand based on reclassification could not be sustained.

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