9911796707
TMI Blog2005 (2) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... board. (iv) CMS PC/AT - with keyboard, winchester drive and floppy drive. (v) CMS mini CPU with keyboard and floppy drive." Prior to March 1987 computers were totally exempt from payment of duty. Therefore, the Respondents were clearing the computers without paying the duty. With effect from 1st March, 1987, computers became a dutiable item. The Respondents, therefore, filed a classification list which was approved. In this classification list they did not include monitors and printers. The Respondents also claimed benefit of Notification No. 175/86-C.E., dated 1st March, 1986. The relevant portion of the Notification reads as follows :- "In exercise of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; from any factory, by one or more manufacturers, had exceeded rupees one hundred and fifty lakhs in the preceding financial year". Show cause notices were issued to the Respondents claiming that monitors and printers were part of the computers. It was claimed that the value of monitors and printers was required to be included in the value of the computers. It was claimed that if these were included then Respondents would not be entitled to the benefit of the Notification inasmuch as the turnover of the Respondents would then be beyond the limit specified in the Notification. The demand against them was confirmed by the Collector. However, the Tribunal has by the impugned Judgment set aside the demand by holding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses monitors and printers are not supplied along with the computer sold by the Respondents. Thus, it cannot be concluded that Respondents sell their computer as a unit which include a monitor and a printer. As a monitor and printer are not essential parts of the computer their value cannot be included in the value of computer. We, however, clarify that situation may be different where a manufacturer sells a computer with a monitor and a printer as a unit. 5.The other question which arises is whether the Respondents are entitled to the benefit of Notification No. 175/86-C.E., dated 1st March, 1986. It is submitted that the Respondents would only be entitled to the benefit of this Notification if the turnover did not exceed Rs. 150 lakhs in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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