TaxTMI 
TaxTMI 
2000 (11) TMI 685
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....served that Electronics Circuit Boards (hereinafter referred to as ECB's) were cleared on payment of duty for home consumption during the period Dec' 92 to May' 93 to the appellants own unit at Dehradun on 3 GP.1's and to their customer service division, Bangalore on 5 GP.1s and on GP.1 to Semi Conductor Complex SAS Nagar, Punjab. The SCN alleges all the clearances to be under Rule 57F (i) (ii), while the details in the Annexure to this SCN indicate only against the solitary clearance to M/s. Semi Conductor Complex, SAS Nagar, Punjab the remarks "57F(i) (ii) rejection". It was further alleged in the SCN that clearances were effected vide approved Classification List No. 129 (91-92), 16/92-93 & 18/92-93 classifying the entity ECB as watch pa....
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....ived is called ECN & after assembly in trade parlance it is called ECB & identified by its end-use, it retains the features of an ECN sufficient enough to be known in Trade parlance as such. Applying Rule 3A of the Interpretative Rules, he found 8542.00 more specific and chapter noting VB of Chapter 85 stipulates its classification under 8542 and use in waters goes against this note. 5. In appeal, the Collector (Appeals) found - (a) As regards disputed amount of Rs. 15,937/- the situations appears to be covered by Rule 57F(i) in as much as Electronic Circuit Board received as inputs have been returned following detection of certain defects without any further processing. Hence, no differential duty on that....
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....ation of the impugned item under Heading 8542.00 : (i)  The Electronic Circuit Board even after adding of certain components, is still known as Electronic Circuit Board about which there is no dispute. (ii)  As per Rule 3(a) of Interpretative Rules, the Heading which provides the most specific description shall be preferred to heading providing for a more general description. (iii) According to Note 5(b) of Chapter 85, for the classification of articles defined, Heading Nos. 85.41 and 85.42 shall take precedence over any other heading in the schedule which might cover them by reference to, in particular, their function. Heading 8542.00 reads as follows : "8542.00 : Electronic Integrated Circuit and Micro assemb....
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.... altered. A bland statement, as in this SCN, "on Re-examination of the above approved classification list, it is observed that the ECBs are rightly classifiable only under Chapter Heading 8542.00" is insufficient notice, and proceedings pursuant to the same are bad in law being violative of principles of natural justice. Therefore, the SCN and the orders pursuant to the same are required to be set aside. (c) Examining the reasons arrived at by the Collector (Appeals), on merits, to classify the 'ECB sub-assembly' which are found and admitted to have been made on all the Gate Passes, in both these appeals, except the GPs wherein ECN has been cleared under 57F (i) (ii) as defective supply by the supplier at Pu....
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....sting solely of passive elements (Heading 85.34) Except for the combinations (to all intents and purposes indivisible) referred to in Part (1), sub-paragraph (2) above concerning hybrid integrated circuits, the heading also excludes assemblies formed by mounting one or more discrete components on a support formed, for example, by a printed circuit and assemblies formed by adding to an electronic microcircuit either one or more other microcircuits of the same or of different types or one or more other devices, such as diodes, transformers, resistors. Such assemblies are classified as follows : (a)  Assemblies which constitute a complete machine or appliance (or one classified as complete), in the heading appropriate to the mach....