TaxTMI 
TaxTMI 
2007 (10) TMI 8
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....pondent herein imported some laptop computers. Excise duty is payable thereupon. Relying on or on the basis of the purported Entry under Tariff Item No. 8471 read with Section 33 of the Customs Tariff Act, the Assessing Authority held that additional tax was imposable thereupon. 4. An order of the Assessing Authority to the said extent has been set aside by the Commissioner (Appeals). The appeal filed by the Revenue before the Tribunal, as noticed hereinbefore, has been dismissed. 5. Mr. Mohan Parasaran, learned Additional Solicitor General appearing on behalf of the appellant, in support of this appeal, inter alia would submit that the Tribunal committed an error insofar as it failed to take into consideration that the goods in question would not come within the purview of the said Rules. It was urged that Entry 8471 of the Tariff framed in terms of the Customs Tariff Act encompasses within its fold desktops and laptops. A laptop being a computer which has all the attributes of desktop is amenable to excise duty. 6. ....
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.... Personal computer 8471 30 90 --- Other - Other digital automatic data processing machines: 8471 41 -- Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined : 8471 41 10 --- Micro computer 8471 41 20 --- Large or main frame computer 8471 41 90 --- Other 8471 49 00 -- Other, presented in the form of systems 8471 50 00 - Digital processing units other than those of sub-headings 8471 41 or 8471 49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units 8471 60 - Input or output units, whether or not containing storage units in the same housing: 8471 60 10 --- Combined input or out put units *** *** 8471 60 30 Monitor 8471 60 40 &n....
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....d provision would clearly go to show that levy of 7% ad valorem additional duty is provided having regard to the average quantum of duty of excise leviable under the First Schedule to the Central Excise Tariff Act on monitor, motherboard, key board, mouse and other parts and components used in the manufacture of the computers. 11. The traditional desktops, computers and monitors are known differently in commercial parlance. A desktop computer is a combination of a CPU with monitor, mouse and key board imported together as a set. What is, thus, covered by the above is a set of items brought together and capable of being put together to make a computer. A notebook computer, on the other hand, comes in an integrated and inseparable form. It is, as such, not a combination of CPU, Monitor, mouse and key board. A set although in view of the dictionary meaning may mean a complete apparatus but it should consist of more than one item, each complementing the work of another and retaining their individual identity all the time. Whereas a desktop computer comprising of a CPU with all the aforementioned accessorie....
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.... computers, laptops are capable of the same tasks as a desktop computer, although they are typically less powerful for the same price. They contain components that are similar to their desktop counterparts and perform the same functions, but are miniaturized and optimized for mobile use and efficient power consumption. Laptops usually have liquid crystal displays and most of them use different memory modules for their random access memory (RAM), for instance, SO-DIMM in lieu of the larger DIMMs. In addition to a built-in keyboard, they may utilize a touchpad (also known as a trackpad) or a pointing stick for input, though an external keyboard or mouse can usually be attached.' 14. The learned Additional Solicitor General would submit that the said description of a laptop would clearly go to show that for the purpose of classification there is not much difference between a laptop and a desktop. From Wikipedia itself, it appears that a desktop computer is described as under: 'A desktop computer is a computer made for use on a desk in an office or home and is distinguished from portable computers such as laptops or PDAs. Desktop computers ....
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....upported by the laptop motherboard. The socketed CPUs are perhaps for the manufacturer's convenience, rather than the end-user, as few manufacturers try new CPUs in last year's laptop model with an eye toward selling upgrades rather than new laptops. In many other laptops, the CPU is soldered and non-replaceable. [7] Many laptops also include an internal MiniPCI slot, often occupied by a WiFi or Bluetooth card, but as with the CPU, the internal slot is often restricted in the range of cards that can be installed. The widespread adoption of USB mitigates I/O connectivity to a great degree, although the user must carry the USB peripheral as a separate item. NVIDIA and ATI have proposed a standardized interface for laptop GPU upgrades (such as an MXM), but again, choices are limited compared to the desktop PCIe/AGP after-market.' 17. We have referred to wikipedia, as the learned counsel for the parties relied thereupon. It is an online encyclopaedia and information can be entered therein by any person and as such it may not be authentic. However, it is not disputed that a laptop and a desktop is differently known in commercial parlance. ....