External hard disk drives fall within exemption for hard disk drives, with settled classification followed over contrary revenue view.
External or portable hard disk drives were treated as falling within the tariff and exemption description of "hard disk drives" because the notifications did not distinguish between internal and external variants. Earlier Tribunal decisions and supporting technical material had consistently adopted that view, and the settled classification was not displaced by a contrary revenue interpretation. On that basis, the goods remained eligible for concessional additional duty exemption, the differential duty demand was unsustainable, and the impugned duty-confirming order was set aside.
Issues: Whether imported external or portable hard disk drives were classifiable as hard disk drives entitled to concessional additional duty exemption under the relevant notifications, and whether the settled view in earlier Tribunal decisions should be followed.
Analysis: The imported goods were found to be hard disk drives used externally as plug-in devices, and the exemption notifications covered hard disk drives without limiting the description to internal or external variants. The existing Tribunal decisions had consistently held that external hard disk drives fall within the notified description, supported by technical material and expert opinion. In these circumstances, classification could not be unsettled merely on a contrary revenue view, and judicial propriety required consistent application of the settled classification.
Conclusion: The goods were held eligible for the exemption, and the demand of differential duty was unsustainable.
Final Conclusion: The appeal succeeded and the impugned order confirming duty was set aside.
Ratio Decidendi: Where the tariff description and exemption notification cover hard disk drives without qualification, external or portable hard disk drives cannot be excluded by administrative preference, and a settled classification supported by earlier decisions should ordinarily be followed absent a materially distinguishable factual basis.
TaxTMI 
AI Drafter ✕
TaxTMI 
