2005 (2) TMI 620

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....apital goods. The appellants have not challenged the correctness of the order treating the items to be second hand item. It is their contention that both the authorities have accepted the item to be in the nature of office equipment akin to Photocopying machines, computers and PCs which are aids for efficient office functioning offering easy way to connect, conference and making distance communications as natural and interactive, enabling meeting participants as being there. However, the findings recorded that the equipment is covered under DGFT Policy Circular No. 16 (RE-2002)/2002-2007, dated 29-9-2003 which was issued in the nature of a clarification to attract the item under restrictions placed on import of second hand items as per Para....

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....ed as capital goods when imported for development of software. The learned Counsel also submits that the transaction value cannot be described and value enhanced on the basis of Internet prices. 2. The appellants have also challenged the enhancement of valuation on the basis of similar items trading on Internet on higher price. In this regard, he relies on the Amar Embroidery v. CC, Mumbai - 2003 (154) E.L.T. 664 (Tri.-Del.), Pearless Pack Ltd. v. CC, New Delhi - 2003 (157) E.L.T. 177 (Tri.-Del.) on the same plea. Further reliance was placed in the judgment rendered in the case of Madhu Overseas Corporation v. CC, Chennai - 2003 (154) E.L.T. 255 (Tri. - Chennai) and that of Speco Industrial Corporation v. CC, Amritsar - 2003 (157) E.L....