2023 (7) TMI 965

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....he reference from the DRI, Mumbai, these Bills of Entry were assessed on merits by classifying the goods under CTH 84717030 and denying the benefit of the notification. The respondent disputed the assessment and paid the duty under protest. After due process of law, the original authority held that as per the Central Excise Tariff Act, Hard Disc Drives and removable or exchangeable Disc Drives are different items and to be classified under CTH 84717020 and 85471730 respectively. The impugned goods which are external hard disks drives which are removable is not eligible for the benefit of the Notification No. 12/2012-CE dated 01.03.2012 at Sl. No. 255. The respondent / importer filed an appeal before the Commissioner (Appeals) who vide order....

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....try of Communications and Information Technology, vide Office Memorandum dated 05.06.2013. The said decision was followed by CESTAT Mumbai in the case of Lenovo India Pvt. Ltd. Vs. Principal Commissioner of Customs (Imports) vide Final Order No. A/86055-86056/2022 dated 09.11.2022. The Ld. counsel prayed that the appeal may be dismissed. 4. Heard both sides. 5.1 The issue is with regard to the classification of the hard disc drives and the eligibility of Notification No. 12/2012-CE dated 01.03.2012 Sl. No. 255. The relevant part of the Notification is reproduced as under:- Sl. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate Condition No. 255 8471 70 or....

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....peal, Commissioner (Appeals), vide impugned order, allowed the appeal and set aside the assessment orders. The impugned order held that external hard disk drives are correctly classifiable under Tariff Heading 8471 70 20 of the First Schedule of the Customs Tariff Act. 2. In the grounds of appeal, the Revenue contended that the Commissioner (Appeals) erred in holding the external hard disk drives are eligible for CV duty concession. It is submitted that these external hard disk drives are correctly classifiable under "removable or exchangeable disk drives" under Tariff Item 8471 70 30. The Revenue relied on certain references from internet to emphasize that removal or exchangeable disk drives are synonymous with portable or externa....

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....d items along with tariff entries and the exemption notification, we are in agreement with the findings in the impugned order. The terms hard disk drive used in the notification has not been amplified either by adding "external" or "internal". On this simple premise alone, exemption to the said item cannot be denied. Admittedly, the imported items are hard disk drive and are meant for external use with computer or lap-top as plug-in device. They are portable hard disk drive. The contention of the Revenue that they are only removable or exchangeable disk drive, is not factually or technically correct. We have perused sample of such removal or exchangeable disk drives. They have full drive mechanism in which storage media is inserted and alon....