Case Law Details
Commissioner of Customs Vs Neotric Informatique Ltd. (CESTAT Chennai)
Introduction: In the case of Commissioner of Customs vs. Neotric Informatique Ltd., the issue at hand was the classification and eligibility for customs duty exemption of “External Hard Disc Drives” imported by the respondent. The dispute revolved around the appropriate tariff heading and the application of Notification No. 12/2012-CE dated 17.03.2012.
Analysis: The respondent imported “External Hard Disc Drives” and claimed the benefit of customs duty exemption under Notification No. 12/2012-CE. However, the Department disputed the assessment and claimed that the goods should be classified under a different tariff heading, which would render them ineligible for the exemption. The key point of contention was whether the hard disc drives were to be considered “removable or exchangeable disk drives,” affecting their eligibility for the exemption.
The Tribunal considered the classification issue and the eligibility of the goods for the exemption. It was noted that the exemption notification specified tariff headings up to six digits, covering both hard disc drives and removable or exchangeable disk drives. The description in the notification mentioned only “hard disk drives” without specifying whether they were “external” or “internal.”
The Tribunal examined the technical specifications and samples of the imported goods, ultimately agreeing with the Commissioner (Appeals) that the goods fell under CTH 84717020 and were eligible for the concessional rate of customs duty as per the notification. They were considered portable hard disc drives meant for external use with computers or laptops as plug-in devices.
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