1998 (3) TMI 267

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....apter heading No. 84.51/55(1) of the erstwhile Customs Tariff and paid the duty at the rate applicable to the said goods at the time of clearance. The respondent filed the refund claim vide their letter dated 3-10-1985 stating that the floppy diskettes are classified in other Customs Houses under BTM No. 92.01/13 at 100%. Basic duty plus 40% auxiliary duty and 12% CVD, whereas Delhi Customs has passed the consignment under BTM No. 84.51/55(1) and assessed @ 200% (Refunds), New Delhi. 3. The A.C. (Refunds) vide its order No. 828/85, dated 29-7-1986 had rejected the claim on the grounds as mentioned and reproduced below : "The items imported in this case is floppy diskettes. They are used with computers. These are computers softwar....

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....riately be classifiable under heading No. 84.51/55 instead of 92.01/13. For the sake of ready reference the relevant portion of the headings are reproduced below : "Heading No. 84.51/55 - Automatic data processing machine and units thereof, ... parts and accessories suitable for use solely or principally, with the machines falling within this sub-heading." "Heading No. 92.01/13 - Musical instruments, instruments and appliances for recording or reproducing sounds or both; ... parts and accessories of the above recording; should recorded or similar media." Because the Heading 92.01/13 covers only musical instruments and parts including prepared media sound or similar recording; sound recorded or similar media. In other words, only so....

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....ro Products - 1986 (25) E.L.T. 485 and the rival entries were 49.04/06 and 84.51/55. The Hon'ble High Court had observed, inter alia, that Heading 84.51/55 refers to machinery or mechanical appliance and the diskettes by no stretch of imagination can be said to be machines or mechanical appliances. It was also observed therein that the diskettes are like the cassettes which are used in a video cassette recorder by obtaining an image on the screen and by no stretch of imagination it could be even suggested that such cassettes are parts or accessories of a video cassette recorder. In other words such diskettes are not an accessory or a part of a machine. In view of the above position and the language of the heading No. 49.04/06 the Hon'ble Co....