Classification of external hard disk drives allowed concessional CVD where the notification covered hard disk drives without limiting internal use.

An exemption notification covering tariff heading 847170 and describing the goods as hard disk drives was not limited to internal drives, so external hard disk drives with plug-and-play functionality fell within the concessional CVD benefit. Technical literature, sample examination, and the nature of the imported goods supported classification as hard disk drives rather than removable or exchangeable disk drives. The Tribunal also relied on an earlier decision on the same issue, affirmed by the Supreme Court, to confirm the same classification approach. The denial of exemption was therefore rejected and the concessional benefit restored to the assessee.

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Issues: Whether external hard disk drives were classifiable as hard disk drives eligible for concessional CVD under Notification No. 12/2012-CE, or as removable or exchangeable disk drives so as to be denied the exemption.

Analysis: The tariff notification covered heading 847170 and described the goods as hard disk drive, without restricting the expression to internal drives. On examination of the samples, technical literature, and the nature of the imported goods, the goods were found to be external hard disk drives with plug-and-play functionality and not removable or exchangeable disk drives of the kind alleged by the Revenue. The earlier Tribunal decision on the same issue, affirmed by the Supreme Court, supported the same classification and entitlement to the concession.

Conclusion: The imported goods were held to be hard disk drives eligible for the concessional benefit under the notification, and the denial of exemption was set aside in favour of the assessee.

Final Conclusion: The classification adopted by the lower authorities was rejected, and the exemption benefit was restored.

Ratio Decidendi: Where an exemption notification describes goods by tariff heading and common commercial description without limiting them to internal use, external hard disk drives answering that description cannot be denied the concessional benefit merely on the basis of their external character.

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