- (1.) REVENUE is in appeal before us aggrieved by and dissatisfied with a judgment and order dated 13. 09. 2006 passed by the Customs excise and Service Tax Appellate Tribunal, South zone Bench at Bangalore in Appeal No. C/135 of 2005 dismissing an appeal upon an order dated 28. 12. 2004 by the Commissioner of customs (Appeals), Bangalore.
(2.) THE question which falls for our consideration herein is as to whether notebook computers (laptop computers) are "cpu with monitor, mouse and keyboard imported together as a set" classified under SI. No. 2 of the Table in rule 2 of the Computers (Additional Duty)Rules, 2004 and in terms whereof the said goods would be subjected to an additional duty of 7%. Respondent herein imported some laptop computers. Excise duty is payable thereupon. Relying on or on the basis of the purported entry under Tariff Item No. 8471 read with section 33 of the Customs Tariff Act, the assessing Authority held that additional tax was imposable thereupon. An order of the Assessing Authority to the said extent has been set aside by the commissioner (Appeals ). The appeal filed by the Revenue before tho Tribunal, as noticed hereinbefore, has been dismissed.
(3.) MR. Mohan Parasaran, learned Additional solicitor General appearing on behalf of the appellant, in support of this appeal, inter alia would submit that the Tribunal committed an error insofar as it failed to take into consideration that the goods in question would not come within the purview of the said Rules. It was urged that Entry 8471 of the Tariff framed in terms of the Customs Tariff Act encompasses within its fold desktops and laptops. A laptop being a computer which has all the attributes of desktop is amenable to excise duty. Mr. M. P. Devanath, learned counsel appearing on behalf of the respondents, on the other hand, would submit that desktops and laptops are known differently in the market. In any event, having regard to the object and purport of the levy of additional duty, a CPU with its accessories in a set does not answer the description of a laptop or a notebook. Our attention in this behalf has been drawn to some literature.;