At, Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Bangalore
By, THE HONOURABLE DR. S.L. PEERAN
By, MEMBER (JUDICIAL) & THE HONOURABLE MR. T. K. JAYARAMAN
By, MEMBER (TECHNICAL)
Sudha Koka, Authorised Representative (SDR) for the Revenue. Shri Vipin Jain, Consultant for the Respondent.
Dr. S. L. Peeran, MEMBER (JUDICIAL)
This is a Revenue appeal against Order-in-Appeal No.46/2006 Cus. dated 15.9.2006 holding that the imported item under the Bill of Entry No.146446 dated 10.4.2006 under the description Storage devices - Hard Disk is rightly classified under CTH No.84717020 and eligible for the benefit of Notification No.6/2006 C. Ex. The finding recorded in Para 10 is relevant and the same is reproduced herein below.
10. The appellants contended that they are eligible for exemption under Notification No.6/2006-CE Dt.1.3.2002, since the item imported by them was a hard disk drive only and irrespective of the sub-heading in which the hard disk drive was classifiable, the exemption contained in Notification 6/2006-CE Dt.1.3.2006 could not be denied. As per item No.17 of Notification No.6/2006-CE Dt.1.3.2006, the goods at Sl. No.(c) Hard Disc Drives is exempted from payment of duty. Since the impugned goods imported from payment of duty under Notn. No.6/2006-CE Dt.1.3.2006 and the appellants are eligible for claiming the exemption. Hence, the order passed by the lower adjudicating authority is liable for set aside. Accordingly, I pass the following order.
The impugned goods imported by the appellants are classified under CTH 84717020 and they are eligible for the benefit of the Notification 06/2006-C.Ex. to this Import. The order passed by the Assistant Commissioner is set aside and the appeal filed by the appellants is allowed with consequential relief.
2. The Revenue contends that the imported item is Array of Hard Disk which requires to be classified under the Residuary Sub Heading No.87717090. It is further submitted that the Notification is only for Hard Disk Drives and not for Storage Disk Array. For Hard Disk Drive, the benefit has been wrongly granted by the Commissioner (A).
3. The learned JDR pointed out to Boards Circular No.105/2003 dated 16.12.2003, which on our security find that the said circular does not pertain to this item specifically but only refers to storage disk array. Be that as it may, the learned Counsel submitted that from the Notification in question in Sl. No.17, the Tariff Heading mentioned is 847170 or 847330 and in Column 3 - (c) - Hard Disk Drive is mentioned. He submits that the main Heading of the Tariff is mentioned in the Column 2 and there is no bifurcation made with regard to the Sub Heading 84717020 or 84717090. All the items falling under 847170 are eligible for the benefit and there is no exclusion to 84717020 or 84717090. He submits that the Commissioner (A) has allowed the benefit on these terms.
4. On a careful consideration of the Notification in question, it is clear from Column 2 that the goods falling under 847170 are entitled for the benefit. There is no bifurcation made to the goods falling under Sub Headings of 84717020 or 84717090. There is no dispute that t
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he item is a Hard Disk Drive, therefore, mere fact that the Hard Disk Drive have been imported in array will not disentitle them from classification under Heading 847170 irrespective of the sub heading. Therefore, the order passed by the Commissioner (A) is legal and proper. There is no merit in this appeal and the same is rejected.