Combo drive exemption under Notification No. 6/2006-CE turned on separate listing, not unwritten departmental conditions.

Imported combo drives were treated as eligible for exemption under Notification No. 6/2006-CE because Sl. No. 17 listed combo drive separately from microprocessor, floppy disc drive, hard disc drive, CD-ROM drive, DVD drive and USB flash memory. The departmental view that a combo drive had to contain every item in Sl. Nos. 17(a) to 17(f) was not supported by any written clarification, circular or instruction. The reasoning accepted that devices described by manufacturers as combo drives and capable of CD/DVD functions could not realistically be required to include unrelated components such as microprocessors or floppy disc drives.

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Issues: Whether combo drives imported by the respondent were eligible for exemption under Sl. No. 17(g) of Notification No. 6/2006-CE, or whether the exemption was available only if the combo drive contained all the items listed in Sl. Nos. 17(a) to 17(f).

Analysis: Sl. No. 17 of Notification No. 6/2006-CE separately listed microprocessor, floppy disc drive, hard disc drive, CD-ROM drive, DVD drive, USB flash memory and combo drive. The dispute turned on the department's reading that a combo drive must contain every item from clauses (a) to (f), which was not supported by any written clarification, circular or instruction. The lower appellate authority found that the imported drives were capable of CD and DVD functions, were described by manufacturers as combo drives, and that it was unrealistic to require them to contain items such as microprocessor, floppy disc drive or USB flash memory. The departmental stand based on unwritten instructions was held to have no legal backing.

Conclusion: The combo drives were held eligible for exemption under Notification No. 6/2006-CE and the department's appeal failed.

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