Customs exemption for imported software upheld where software qualified as Information Technology software under the notification entry.

Imported software supplied with hardware was treated as "Information Technology" software under the customs exemption entry because it operated with the hardware in a manner consistent with the notification's definition. Revenue produced no contrary material to dislodge the claim. The attempt to go beyond the show-cause notice and reclassify the software was outside the scope of the controversy. On that interpretation of the notification entry and its explanation, the exemption was held available to the importer.

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Issues: Whether the imported software qualified as "Information Technology" software under entry 285 of Notification No. 17/2001-Cus. dated 01.03.2001 and was therefore entitled to customs exemption.

Analysis: The dispute turned on the meaning of the notification entry and its explanation, not on reclassification of the goods. The imported software was supplied along with hardware and was shown to operate with it in a manner consistent with the definition of "Information Technology" software in the notification. No contrary evidence or authentic material was produced by Revenue to dislodge the appellant's claim. The appellate authority's attempt to travel beyond the show-cause notice and reclassify the software was outside the scope of the controversy.

Conclusion: The imported software was "Information Technology" software within the notification and the exemption was available to the appellant.

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