Computer switch mode power supplies stayed under Heading 84.71; reclassification to Heading 85.04 was not warranted.

Switch mode power supplies used exclusively in computers to convert AC into DC were held classifiable under Heading 84.71, because the factual finding that they were specifically designed for computer use remained undisturbed and Chapter Note 5(b) supported that classification. The Tribunal also applied the Larger Bench principle that, where the supplier had cleared the inputs under Heading 84.71 and duty had been paid on that basis, reclassification to another heading was not warranted on removal of the inputs. The reclassification under Heading 85.04 was therefore set aside.

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Issues: Whether Switch Mode Power Supply used in computers was classifiable under Heading 84.71 or under Heading 85.04, and whether reclassification could be made when the goods had been cleared as inputs under Heading 84.71.

Analysis: The record showed that the goods were used exclusively in computers to convert AC current into DC current and that the original authority had found them to be specifically designed for such use. That factual finding was not displaced in the departmental appeal. The Tribunal also applied the Larger Bench ruling that, where the supplier had classified the inputs under Heading 84.71 and duty had been paid accordingly, reclassification to another heading was not warranted in the removal of such inputs. On that basis, Chapter Note 5(b) supported classification under Heading 84.71 rather than Heading 85.04.

Conclusion: The goods were correctly classifiable under Heading 84.71, and the order reclassifying them under Heading 85.04 could not stand.

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