Inclusive exemption definition for computers covers CPU cleared separately where heading 8471 classification is satisfied.

Computers cleared as CPU without monitor, but classifiable under heading 8471, fell within the concessional duty entry for computers because the notification's explanation used inclusive language. The term "includes" enlarged the meaning of "computer" to cover a CPU cleared separately, and the exemption had to be construed liberally once the eligibility condition was met. A CPU was therefore not excluded merely because it was not supplied with a monitor, mouse and keyboard as a set. The demand was unsustainable and the impugned order was set aside.

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Issues: Whether computers cleared as CPU without monitor, but falling under heading 8471, were eligible for concessional duty under Notification No. 6/2006-C.E. dated 01.03.2006, in view of the explanation that "computer" includes CPU cleared separately or CPU with monitor, mouse and keyboard cleared together as a set.

Analysis: The goods were accepted as classifiable under heading 8471, which satisfies the eligibility entry for computers. The explanation in the notification uses the word "includes", which enlarges the meaning of the term "computer" and is not restrictive. Once the eligibility condition is met, the exemption is to be construed liberally. On that reading, CPU cleared without monitor is not excluded merely because monitor is not supplied with it, so long as the goods otherwise answer the description in the notification.

Conclusion: The appellants were entitled to the benefit of the notification and the duty demand could not be sustained.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: An exemption notification containing an inclusive definition must be construed so that, after the eligibility clause is satisfied, the exemption is given a liberal meaning and the inclusive term is treated as enlarging rather than restricting the covered goods.

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