Computer parts classification prevails for imported microprocessor assemblies; integrated circuit exemption was not available.

Imported microprocessor assemblies designed as parts of digital data processing machines were held classifiable under heading 8473 as computer parts, rather than under heading 8542 as integrated circuits. On the accepted technical findings, the goods consisted of electronic microcircuits mounted on a carrier and functioned as parts of computers, so the exemption intended for integrated circuits under Notification No. 23/98-Cus. was not available. The authorities' classification was therefore upheld and the duty demand sustained.

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Issues: Whether the imported microprocessor units were classifiable as parts of computers under heading 8473 and not as integrated circuits under heading 8542, and whether the benefit of concessional duty under Notification No. 23/98-Cus. was available.

Analysis: The imported goods were found, on the technical examination accepted by the lower authorities, to be assemblies consisting of electronic micro circuits mounted on an appropriate carrier and designed as parts of a digital data processing machine. The classification adopted by the department under heading 8473 was consistent with the view that Pentium-II and similar microprocessors are parts of computers and not independent integrated circuits. The exemption notification claimed for integrated circuits was therefore not attracted. The appeal disclosed no basis to disturb the concurrent factual and technical findings.

Conclusion: The goods were correctly classified under heading 8473 and the concessional exemption as integrated circuits was not available.

Final Conclusion: The classification adopted by the authorities below was upheld and the demand sustained, resulting in rejection of the appeal.

Ratio Decidendi: Where imported microprocessor assemblies are designed and used as parts of computers, they are classifiable as computer parts rather than as integrated circuits, and exemption meant for integrated circuits cannot be claimed.

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