Customs exemption for imported router software upheld where departmental circular could not narrow the notification's scope.

Imported software accompanying a router remained eligible for basic customs duty exemption under Notification No. 11/97-Cus. because the notification's definition of "computer software" did not exclude software used in telecom or similar systems merely due to its functional role in the imported equipment. A departmental circular could not impose a restriction absent from the notification, and therefore could not curtail the exemption. The denial of exemption was unsustainable on that basis.

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Issues: Whether imported software accompanying a router was eligible for exemption from basic customs duty under Notification No. 11/97-Cus. despite the Board circular stating that software used in telecom and similar systems was not eligible.

Analysis: The notification's explanation defining "computer software" did not contain any exclusion barring software used for telecom, medical, or other applications from exemption merely because it was imported to make a system functional. The circular imposed a restriction not found in the notification, and therefore could not defeat the exemption granted by the notification.

Conclusion: The imported software was entitled to the notification benefit, and the denial of exemption was unsustainable.

Ratio Decidendi: A departmental circular cannot curtail an exemption where the governing notification does not contain the exclusion relied upon by the department.

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