Expanded software exemption applies where later notification's plain language covers machine-readable data recorded on tapes.

Imported data recorded on tapes fell within the broadened definition of "Information Technology Software" in Notification No. 20/99-Cus., because the notification covered any representation of instructions, data, sound or image recorded in machine-readable form. By omitting the earlier exclusion found in Notification No. 23/98-Cus. concerning software required for the operation of a specific machine, the later notification expanded exemption coverage and could not be restricted by importing limitations from the earlier text. The tapes were therefore entitled to exemption, and the contrary view of the Commissioner (Appeals) was unsustainable.

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Issues: Whether data recorded on tapes, imported without the programme for manipulation, qualified as "Information Technology Software" under Notification No. 20/99-Cus. and was eligible for exemption.

Analysis: The relevant explanation in Notification No. 20/99-Cus. defined Information Technology Software broadly as any representation of instructions, data, sound or image recorded in a machine readable form. Compared with Notification No. 23/98-Cus., the later notification omitted the restrictive exclusion relating to software required for the operation of a specific machine. On a plain reading, the amended wording enlarged the scope of the exemption and did not permit the restriction applied by the lower authority. The imported goods were admittedly data recorded on tapes and fell within the wider description in the later notification.

Conclusion: The goods were entitled to the benefit of exemption under Notification No. 20/99-Cus., and the contrary view of the Commissioner (Appeals) could not be sustained.

Ratio Decidendi: Where an exemption notification widens the defined coverage of software by deleting a prior exclusion, the later notification must be applied according to its plain language and the benefit cannot be denied by importing limitations from the earlier notification.

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