Customs classification of CD-ROM design images excluded from printed matter and software headings, with exemption denied.

CD-ROMs containing images of engineering drawings and designs were held not to fall within Heading 49.06, because that heading is confined to originals drawn by hand, handwritten texts, or photographic reproductions and carbon copies of such originals. They also did not fit Heading 49.11, which covers printed matter in the conventional sense and does not extend to recorded digital images. The material was further treated as data or output images rather than software, because software consists of instructions or programs that enable computer hardware to function. On that basis, the goods were not classifiable under Heading 85.24 and the claimed exemption under Notification No. 17/2001-Cus was unavailable.

---

---

Issues: (i) Whether CD-ROMs containing images of engineering drawings and designs were classifiable under Heading 49.06 or Heading 49.11 of the Customs Tariff Act, 1975. (ii) Whether such CD-ROMs could be treated as software or otherwise fall under Heading 85.24 or the exemption under Notification No. 17/2001-Cus dated 1.3.2001.

Issue (i): Whether CD-ROMs containing images of engineering drawings and designs were classifiable under Heading 49.06 or Heading 49.11 of the Customs Tariff Act, 1975.

Analysis: Heading 49.06 applies only to originals drawn by hand, hand-written texts, or photographic reproductions and carbon copies of such originals. The recorded images on a CD-ROM are not originals drawn by hand and are not within the limited scope of that heading. Heading 49.11 is a residuary provision for other printed matter, but it is intended for printed material in the conventional sense and cannot be extended to recorded digital images of engineering drawings and designs.

Conclusion: The CD-ROMs were not classifiable under Heading 49.06 or Heading 49.11 and the conclusion was against the assessee.

Issue (ii): Whether such CD-ROMs could be treated as software or otherwise fall under Heading 85.24 or the exemption under Notification No. 17/2001-Cus dated 1.3.2001.

Analysis: Software denotes instructions or programs enabling computer hardware to function, whereas the goods in question were only data or output images of drawings and designs. Such material does not itself provide instructions to hardware and therefore is not software. Since the exemption covered CD-ROM as such and not a disc containing engineering drawings and designs, the goods also did not fall under Heading 85.24 or the claimed sub-headings.

Conclusion: The CD-ROMs were not software, did not fall under Heading 85.24, and the benefit of the notification was unavailable, all against the assessee.

Final Conclusion: The tariff classification claimed by the assessee was rejected, and the appeal failed.

Ratio Decidendi: For tariff purposes, a CD-ROM containing engineering drawings and designs is not classifiable as printed matter or software where the tariff entries are confined to hand-drawn originals, conventional printed matter, or data that itself functions as computer instructions.

---