Populated printed circuit boards fall outside an exemption limited to printed circuits and unpopulated boards.

Populated printed circuit boards fitted with resistors, capacitors and other components were held outside Notification No. 74/85-C.E., because the exemption covered only printed circuits and unpopulated printed circuit boards. The explanatory material showed that mounted electrical components take the goods beyond the scope of printed circuits for the relevant heading, and the proportion of active or passive elements was immaterial. On that basis, the imported goods were not entitled to exemption, and the departmental position succeeded, restoring the demand.

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Issues: Whether populated printed circuit boards were eligible for the benefit of Notification No. 74/85-C.E., which covered only printed circuits and unpopulated printed circuit boards.

Analysis: The imported goods were admittedly boards fitted with resistors, capacitors and other components, and were therefore populated printed circuit boards. The explanatory material relied upon showed that circuits with mounted electrical components are not regarded as printed circuits within the relevant heading. The proportion of active or passive elements was immaterial, and the notification did not extend its benefit to populated boards. On these facts, the imported goods could not be treated as printed circuits for exemption purposes.

Conclusion: The benefit of Notification No. 74/85-C.E. was not available to the imported populated printed circuit boards, and the departmental stand succeeded.

Final Conclusion: The exemption claim failed and the original demand position was restored.

Ratio Decidendi: Where an exemption notification covers only printed circuits or unpopulated printed circuit boards, populated boards fitted with electrical components are the exemption and must be assessed accordingly.

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