QUANTUM HI-TECH MERCHANDISING Vs. C.C.

JUDGEMENT

(1.) The issue involved in this Appeal filed by M/s. Quantum Hi -tech Merchandising is whether CPU cooling fans imported by them are classifiable under sub -heading 8473.30 of the First Schedule to the Customs Tariff Act as claimed by them or under sub -heading 8414.59 of the Tariff as confirmed by the Commissioner (Appeals) under the impugned order.

(2.) Shri G.L. Rawal, learned Advocate, submitted that the CPU cooling fan imported by them is a device which is meant to cool the temperature of the CPU which constantly emits heat and is required to be constantly cooled; that it is an identifiable part of automatic processing machine; that the Computer cannot run without this cooling unit which comprises of a fan, a heat sink, metal clip to attach it to CPU which is an integral part of a computer and a connector; that HSN Explanatory Notes below Heading 84.14 relating to 'fans' clearly mentions that "this Heading excludes fans fitted with elements additional to their motors or housing them (such as large dust separating cones, filters, cooling or heating elements and heat exchangers) if such elements give them the characteristics of more complex machines of other Headings". He also contended that the impugned goods are parts suitable for use solely or principally with the CPU and as such will be classifiable under Heading 84.73 only being parts suitable for use solely or principally with machines under Heading Nos. 84.69 to 84.72. He finally submitted that Note 2(a) to Section XVI of the Customs Tariff Act provides that parts which are goods included in any of the Heading of Chapter 84 or 85 are in all cases to be classified in their respective headings; that this note however, does not apply to specified headings which includes Heading No. 84.73 which goes to show that the parts suitable for use solely or principally and falling under Heading No. 84.73 will always be classified under Heading No. 84.73. He also contended that the impugned goods are classified at other Customs Houses under Heading No. 84.73 only.

(3.) Countering the arguments Shri Virag Gupta, learned Departmental Representative, submitted that the impugned goods is nothing but a CPU fan for cooling the Central Processing Unit; that fans are specifically classifiable under Heading 84.14 and in terms of Note 2(a) to Section XVI of the Tariff, these are to be classifiable in its respective Heading that is 8414.59. He also submitted that Explanatory Notes to HSN regarding Section Note clearly provides that parts which are suitable for use solely or principally with particular machine are to be classified in the same heading as machines does not apply to parts which themselves constitute an article covered by a Heading of Chapter 84 or Chapter 85 and these are in any case to be classified in their own appropriate Heading even if specially designed to work as parts of specific machine.