Computer interface as peripheral unit qualifies for customs exemption under the relevant tariff notifications.

A computer interface functioning as a peripheral unit of a computer was treated as covered by the exemption scheme under Notification No. 115/80-Cus. and Notification No. 41/80-Cus. The goods had been classified under Heading 84.51/55(2), but the deciding authority accepted that the interface was a computer peripheral for purposes of the notifications. As those notifications granted partial basic customs duty exemption and full auxiliary duty exemption to computer peripheral units under the relevant sub-heading, the appellants were entitled to both benefits and consequential relief followed.

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Issues: Whether the imported computer interface qualified as a computer peripheral unit entitled to the benefit of Notification No. 115/80-Cus. and Notification No. 41/80-Cus.

Analysis: The goods were assessed under Heading 84.51/55(2) of the Customs Tariff Act and the claim for exemption under the two notifications was rejected by the customs authorities. On hearing both sides, the authority accepted that the interface was a peripheral for the computer. The notifications granted partial exemption from basic customs duty and full exemption from auxiliary duty to computer peripheral units falling under sub-heading No. 2 of Heading 84.51/55.

Conclusion: The appellants were entitled to the benefit of both notifications.

Final Conclusion: The appeal succeeded and the exemption claim was upheld with consequential relief.

Ratio Decidendi: A computer interface that functions as a peripheral unit of a computer is covered by exemption notifications applicable to computer peripheral units under the relevant customs tariff heading.

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