9911796707
TMI Blog2014 (5) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Brief facts of the case are that the Respondents made import of electronics parts/components namely, Resistors, Inductors, Chips, Codecs, Driver CDs, Labels, Heat Sinks, Regulators, Capacitors etc. of Motherboards, Modems, Fast Ethernet Adapters, Ethernet Cards, Switches, Hubs etc. Show Cause Notices were issued to the Respondents on the ground that the items imported goods are to be appropriately classifiable as Motherboards, Modems, Fast Ethernet Adapters, etc. in unassembled forms by applying Rule 2(a) of the General Rules for Interpretation. The respondents filed detailed the replies and thereafter the adjudicating authority dropped the proceedings. 3. The contention of the Revenue that there is no dispute that the electronic part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; "IT products (a) Storage and Handling of the imported components and parts - These components and parts received in hermetically sealed packages were stored by them in temperature and humidity control areas in ESD safe environment because of susceptibility of these components and parts to electrostatic discharge. This was achieved with the help of ESD safe flooring and antistatic flooring, antistatic wristbands connected to spare and independent guarded ESD ground having earth resistance of 0.10 ohms. Care was also taken to maintain resistance within tolerance band of +/- 5 by establishing a process of selective moisturizing at the earthling area. Balance ionizers were used to mainta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; (iv) Mounting of individual components on the PCB - The components are available either in reels or in trays, mounted on to the respective feeders/tray mechanism. The machine used for mounting the components is programmed for sequential mounting of these components s per XIY data of the products. Mounting of Integrated Circuits (ICs) is done very precisely by the mounting head, which has to be accurate within few micron tolerances to avoid fatal damage to the component/product. The machine has necessary mechanism like camera to ensure proper component pick-up, integrity and placement. (v) Re-flow oven - The solder paste i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orms a solder joining filler. This process is undertaken at 250 C and all the Components are soldered with the PCB to make goods electrical as well as applied underneath the PCB where leads of the components mounted on the PCB are visible. The excess length of the leads and the excess soldering are thereafter removed manually. (ix) Inspection and testing - The assembled visually inspected boards are sent through the automated and inspection stages for verification of each fundamental parameter for functionality and performance." 8. The contention is that Revenue is not disputing the above process undertaken by the Respondent in respect of the imported parts. 9. The conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent as unassembled or disassembled articles and to classify under their respective headings, namely integrated circuits under Heading 85.42, Diodes resistors etc under Heading 85.41, printed circuit boards under Heading 85.34 by virtue of application of Section Note 2 (a) of the General Rules for Interpretation. Revenue heavily relied upon the provisions of Note 2 (a) of the General Rules for Interpretation of Customs Tariff Act. We find that HSN Explanatory Notes, Rule 2 (a) covers the complete or finished articles presented in unassembled or disassembled condition and the same is to be classified in the same heading as the assembled article. It is usually for reasons such as requirements or convenience for handling, transportation an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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