9911796707
TMI Blog2009 (5) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... computers. In terms of Notification No. 6/2002-C.E., dated 1-3-2002, as amended, the effective date of CVD for 'Computers' was reduced from 16% to 8%. The appellants filed Bills of Entry for clearance of servers (CPU) under Chapter heading 8471 and claimed the benefit of Notification No. 2/2004-C.E., dated 8-1-2004 and paid CVD at 8% from 8-1-2004 to 8-7-2004 claiming them as 'Computer'. The department did not agree with the importer's claim. According to the department, benefit of notification could not be allowed to the servers (CPU). However, the clearance was allowed under provisional assessments. The appellants cleared the servers claiming duty at the rate of 8% CVD. In the meantime another Notification amending the original Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2004-C.E., dated 9-7-2004. He stated that the word 'Computer' has not been defined in the Notification. Further, neither the Customs Tariff nor the Central Excise Tariff defines a 'Computer'. He also invited our attention to Chapter Note 5 of Chapter 84 of CETA, 1985 which gives the definition of the "automatic data processing machine" for the purposes of heading 8471 especially not number 5(A) (a), (b), (c), (d) (e). It was stated that a 'Server' is also a computer, which is used in conjunction with other computers in managing a network. In other words, the server itself is an 'automatic data processing system'. He also invited our attention to the definition of 'server' given in the www.webopedia.com which reads as follows: "Server: A c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o raised this issue in the context of a Tariff Conference held in 2006. This issue has been discussed at length as point No. N-6 and accordingly, the following decision was taken: "The Conference noted that the CPU, in technical terms, is nothing but the main processor along with cache/random access memory, which is required for processing of information/data. The Hard Disk Drive is not necessarily required as an essential part of CPU. Therefore the CPU, which does not contain the Hard Disk Drive, will also be eligible for benefit of Notification No. 6/2002-C.E., dated 1-3-2002". 3. The minutes of the Tariff Conference was communicated to the field formations vide F. No. 528/75/2003-Cus. (TU), dated 28-6-2006. However, it appears that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, it was held that the 'server itself is an Automatic Data Processing Machine and is classifiable under CTH 8471.00. The following decisions were relied on to say that explanation amended to Notification when clarificatory in nature will have retrospective effect: (i) W.P.I.L. v. CCE [2005 (181) E.L.T. 359 (S.C.)] (ii) CC v. Shaw Wallace & Co. Ltd. [1990 (50) E.L.T. 143 (T)] (iii) Central Machine Tool Institute v. CC, Bangalore [2000 (124) E.L.T. 231 (T)] (iv) Indian Aluminum Co. Ltd. v. CCE, Cochin [1995 (79) E.L.T. 111 (T)] 5. The learned Departmental Representative reiterated the impugned order. 6. We have gone through the records of the case very carefully. The issue in hand is whether the servers imported by the appellants are e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding No./ Sub-heading Description of Goods Rate of duty 261 Any Chapter Following goods namely :- Computers of heading 84.71 (a) Parts used within the factory of production for manufacture (b) of computers of heading 84.71. Explanation: For the purposes of this exemption "Computer" shall include CPU cleared separately; or CPU with monitor mouse or key board; cleared together as a set; but shall not include input or output devices or accessories such as monitor, key board, mouse, modem, uninterrupted power supply or web camera cleared separately. NIL On going through the said Notifications, it is seen that for the benefit of notification, the description given is only 'computer' and the explanation given there ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
