‘External Hard Disc Drives’ Classified as per Central Excise Tariff Act is eligible for Benefit of Exemption from Customs Duty under Exemption Notification: CESTAT [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the external hard disc drives classified as per the Central Excise Tariff Act,1985 were eligible for the benefit of exemption from customs duty under exemption notification. 

Neoteric Informatique Ltd, the respondent-assessee imported ‘External Hard Disc Drives’ under the cover of Bills of Entry and claimed the benefit of Notification the original authority rejected the claim of the assessee and the Commissioner (Appeals) allowed the claim of the assessee. 

The revenue appealed against the order passed by the Commissioner (Appeals) for allowing the claim of the assessee. 

Harendra Singh Pal, the counsel for the department contended that the external hard disc drives are essentially presented and marketed as ‘portable drives’ and in addition to the features of portability, these external hard disc drives are different from internal hard disc drives. 

Further submitted that the external drives also encapsulate additional electronic circuits and connection interfaces that render them usable as a ‘removable disc drive’ and it was different from normal hard disc drives and not eligible for benefit under notification. 

L. Gokulraj, the counsel for the assessee contended that the hard disc drive would be eligible for the benefit of exemption and it was not stated whether the said hard disc is to be removable or exchangeable. 

Also submitted was that the decision made by the Commissioner (Appeals) by allowing the claim of the assessee was as per the law and liable to be sustained. 

The Bench observed that the external hard disc drive was rightly classified by the assessee and was eligible for the benefit of exemption under the exemption notification. 

The two-member bench comprising Sulekha Beevi (Judicial) and Vasa Seshagiri (Technical) upheld the decision made by the Commissioner (Appeals) while dismissing the appeal filed by the revenue. 

To Read the full text of the Order CLICK HERE

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