Classification of Micro/Mini SD cards under semiconductor media entry upheld, securing exemption under the relevant notification.

Micro/Mini SD memory cards were treated as classifiable under sub-heading 8523.51 as semiconductor media, solid-state, non-volatile data storage devices because the substituted substrates in place of a PCB were regarded as printed circuits under the General Rules for Interpretation and Note 4(a) to Chapter 85. The Board's circular was applied to support this classification, and the competing view that the goods were smart cards under another entry was rejected. On that basis, the cards were held eligible for the exemption under Notification No. 6/2006-C.E.

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Issues: Whether Micro/Mini SD memory cards were correctly classifiable under sub-heading 8523.51 as semiconductor media, solid-state, non-volatile data storage devices, and consequently entitled to the benefit of Notification No. 6/2006-C.E.

Analysis: The dispute turned on the proper tariff entry for the imported cards. The Board's Circular No. 12/2012 clarified that where the PCB is substituted by substrates in Micro/Mini SD cards, the substrates satisfy the definition of printed circuits and the cards qualify as semiconductor media, solid-state, non-volatile data storage devices under sub-heading 8523.51 by application of the General Rules for Interpretation and Note 4(a) to Chapter 85. On that basis, the Revenue's contention that the goods were smart cards falling under the competing entry was not accepted.

Conclusion: The cards were correctly classified under sub-heading 8523.51 and the assessee was entitled to the exemption under Notification No. 6/2006-C.E.

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