Computer software classification under the tariff turns on actual use with data processing equipment, not artificial software sub-categories.

Software used with a data processing machine for checking and verifying telecommunication satellite operations was held classifiable as computer software under sub-heading 8524.20. The tariff heading specifically covers computer software, and the classification scheme did not recognise a further split between operational software and application software for placing the product under sub-heading 8524.90. Because the product functioned as software used in data processing for satellite verification tasks, it fell within the computer software entry rather than other software. The Revenue's classification basis was rejected.

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Issues: Whether the product, being software used with a data processing machine for checking and verifying the operation of a telecommunication satellite, was classifiable under Heading 85.24 as computer software under sub-heading 8524.20 or as other software under sub-heading 8524.90 of the Central Excise Tariff Act, 1985.

Analysis: Heading 85.24 covers records, tapes and other recorded media for sound or other similarly recorded phenomena, and the heading specifically includes computer software. The classification dispute turned on whether the software could be split into operational software and application software for placing it under sub-heading 8524.90 as urged by Revenue. The classification scheme in the tariff did not provide such further distinction. The software was used with a data processing machine for checking and verifying telecommunication satellite operations, bringing it within the entry for computer software under sub-heading 8524.20.

Conclusion: The product was correctly classifiable under sub-heading 8524.20 as computer software, and the Revenue's appeal failed.

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