Floppy drive, hard disc drive etc liable to duty when not meant for use in CPU/Laptop
CENTRAL Government has amended general exemption notification 6/2006-CE by replacing S. No. 17 thereof whereby it is now provided that microprocessor for computer, other than motherboards, floppy disc drive, hard disc drive, CD-ROM drive, DVD Drive/DVD Writers, flash memory, and combo drive when fitted inside a CPU/Laptop is exempt from excise duty. However when they are not meant for use other than inside a CPU/Laptop they are liable to 4% excise duty.
The Government may have meant that these said goods will be liable to duty if they are sold as such in the secondary market as spares or components. But the wording employed in the notification gives an impression that they will be liable to excise duty of 4% when they are not meant for use other than inside a CPU/Laptop. One wonders whether these goods can be used as standalone products without having anything to do with a CPU/Laptop. In such instances it could be argued that every item will be ultimately fitted into a CPU/Laptop even if they are purchased as standalone products from the manufacturers or their dealers and therefore not liable to excise duty at all.