Telecom software exemption under customs notification upheld; later explanation treated as non-retrospective.

Imported telecom software was examined against the exemption entry for "computer software" under Notification No. 11/97-Cus., and the effect of the explanation inserted by Notification No. 3/98-Cus. was in issue. The Larger Bench view applied in the text treated the later explanation as not retrospective and read telecom software as falling within the exempted entry for the relevant prior period. Following that reasoning, the Tribunal accepted the exemption for the imported software and did not reopen the issue in the appeal.

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Issues: Whether the imported telecom software was entitled to exemption as "computer software" under Notification No. 11/97-Cus. dated 1-3-1997, and whether the explanation inserted by Notification No. 3/98-Cus. dated 11-2-1998 could be applied retrospectively.

Analysis: The dispute turned on the scope of the exemption entry for "computer software" and the effect of the later explanation. The Larger Bench decision relied upon had held that the explanation was not retrospective and had also concluded that telecom software fell within the exempted entry for the relevant prior period. Following that decision, the Tribunal treated the exemption as available to the imported telecom software and declined to reopen the question in the present appeal.

Conclusion: The imported telecom software was held entitled to exemption, and the appeal was allowed.

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