Retrospective exemption for imported CPUs under amended CVD notification upheld for pre-amendment clearances.

Notification No. 6/2002-CE, as amended by Notification No. 23/2004, was considered for concessional CVD on imported CPUs. The key issue was whether the 2004 explanation, clarifying that a computer includes CPUs cleared separately, applied retrospectively to imports made before the amendment. Relying on the Tribunal's reasoning in IBM India Ltd., the clarification was treated as retrospective, and imported CPUs were held eligible for the exemption. The differential duty demand was therefore not sustainable, and the benefit of the notification followed for the relevant imports.

---

---

Issues: Whether CPUs imported during the relevant period were entitled to concessional CVD under Notification No. 6/2002-C.E. and whether the amendment inserted by Notification No. 23/2004-C.E. operated retrospectively as a clarificatory change.

Analysis: The applicable notification originally granted exemption to computers, with an explanation dealing only with valuation. The later amendment expressly stated that computer would include CPU cleared separately, which supported the view that the amendment merely clarified the existing scope of the entry rather than creating a new benefit from the amendment date. Since the imported item was treated as a computer and the amendment was held to be clarificatory, the benefit could not be denied for the earlier period.

Conclusion: The CPUs were held eligible for the concessional notification benefit and the amendment was treated as retrospective in operation.

---