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2017 (2) TMI 9 - CESTAT CHENNAIClassification of imported goods - Benefit of exemption under N/N. 6/2006-CE dated 1st March 2006 - appellant classified the goods as under heading 85235210 of the first schedule to the Customs Tariff act, 1975 as ‘SIM modules' - revenue's claim that the imported goods are classifiable under heading 8542 of first schedule to Customs Tariff Act, 1975 as 'integrated chip modules' and hence not eligible for exemption from additional duty that is extended under relevant notification to 'smart cards' - whether the imported goods are SIM modules or integrated chip modules? Held that: - u/r 2(a) of the General Interpretative Rules supra, SIM as imported, is liable to be treated as a finished 'SIM card'. Denial of benefit of exemption notification on the ground that it is not card but a mere precursor to card would create an anomalous situation. SIM embedded in a card with a personalization, imported from abroad would be eligible for the exemption notification. On the other hand, the bulk of the 'SIM cards’ sold in the market, also imported and subject to personalization in India for different mobile service providers, would render the goods liable to additional duty. The coverage of sl.no.22(1) of N/N. 06/2006-CE supra would be available only to mobile service operators, who either import the embedded SIMs, or to entities who enter into exclusive supply contracts with a specific service provider. The SIM imported in reel is a 'card' classifiable under heading 8523 as a 'smart card' fulfilling all the essential ingredients of a 'smart card' - benefit of notification allowed - appeal allowed - decided in favor of appellant.
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