2006 (8) TMI 368

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....of Entry dated 21-11-1998. The appellants classified the goods under Integrated Circuits falling under CTH 8542.19. However, the Department proposed to classify the goods under CTH 8473.30 as parts of computers. In the case of the classification claimed by the appellant, the duty was 5%+0%+18%CVD+0%SAD. The rate of duty, if the goods are assessed as parts of computer, would be 20%+2%SCD+13%CVD+Nil SAD. The original authority relied on the amendment vide Notification 97/98-Cus., dated 27-11-1998 to Customs Notification No. 23/1998, dated 2-6-1998 wherein a new Sl. No. 187A had been inserted after Sl. No. 187 in the original Notification No. 23/98. This entry indicates the classification of Microprocessors under 8473.30. The original Authorit....

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....ticular, their function. (iii)   The finding that the impugned goods are classifiable under CH 8473.30 is improper, wholly based on the Chapter Notes of Chapter 84 and no evidence or technical literature is provided in support of such findings. (iv)   The Commissioner (Appeals) has not correctly applied the exclusion clause provided in the HSN Notes to the Heading 8542 to come to the conclusion that the impugned goods do not fall under CH 8542. (v)     The Adjudicating Authority failed to appreciate that the impugned goods are Hybrid Integrated Circuits and not PPCB (Populated Printed Circuit Boards). The Integrated Circuits cannot be used in a CPU/Computer unlike a PPCB. They need to be moun....

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....egrated Circuits falling under CH 8542 and not as parts of computer falling under CH 8473.30. The learned Advocate pointed out that the impugned goods are actually Hybrid Integrated Circuits falling under CH 85.42 and further referred to our notice, the Chapter Note in Chapter 85 below 5(B) after (c), wherein it is mentioned that "For the classification of the articles defined in this Note, Headings 8541 and 8542 shall take precedence over any other heading in this Schedule which might cover them by reference to, in particular, their function." The appellant pointed out that the Commissioner (Appeals) has not properly applied the exclusion clause below Heading 85.42 in the HSN to arrive at the conclusion that the impugned goods cannot be cl....

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....Logic Unit), a microprocessor can perform mathematical operations like addition, subtraction, multiplication and division. Modern microprocessors contain complete floating point processors that can perform extremely sophisticated operations on large floating point numbers. *       A microprocessor can move data from one memory location to another. *       A microprocessor can make decisions and jump to a new set of instructions based on those decisions. (Reference : How Microprocessors Work by Marshall Brain). We have already seen that a Microprocessor chip contains millions of transistors on a piece of silicon. Hence, a Microprocessor is also an Integrated Circuit. How....