Classification of CPU Cooler Fan with Heat sink – Board revises stand
Board had in Circular No. 17/2004-Cus., dated 20th February 2004 communicated that Board had accepted the recommendations of the Chief Commissioners’ Tariff conference that CPU Cooler Fan with Heat sink would be appropriately classified under Tariff item 8414 59 10.
But the HSN Explanatory notes to heading 8414 read as:-
This heading excludes fans fitted with elements additional to their motors or housing if such elements give them the characteristics of more complex machines of other headings
Based on this, the Tribunal held that ‘CPU cooler fan with heat sink’ are appropriately assessable under heading 8473.30 of the Customs tariff.
In a rare and welcome gesture of accepting fact and judicial opinion, Board has reversed its earlier opinion and now communicates that CPU Cooler Fan with Heat sink is appropriately classifiable under sub-heading 8473.30 instead of Tariff item 8414 59 10. And the Circular No. 17/2004 is withdrawn.
Incidentally the Tariff conference of Chief Commissioners is an elaborate affair where the highest officers of the department put their clever heads together and decide on knotty problems. How is it that such a great conference failed to take note of the elementary principle enunciated in the HSN explanation? May be they should allow advocates and assessees to present the case before these conferences so that the conference has access to the other side’s opinion in addition to the notes prepared by the departmental officers.
In any case Board’s gesture in showing respect to the HSN and the Tribunal is laudable and let us hope this will not be an isolated incident but will be a recurring feature.
CIRCULAR NO. , Dated: September 2, 2005