TaxTMI 
TaxTMI 
2010 (6) TMI 373
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.... goods as "Media Workstation Non-linear Editing System" and classifying the same under 8471 10 00. In the connected invoice of the supplier, the goods were described as "JVC Professional Products Media Workstation Non-Linear Editing System (Including 3D DVE, MW-D30U & SDI, MW-D10U)". The invoice provided the total value of the goods as JY 3,255,000. Before the goods were assessed, the importer, in a letter dated 7-7-2000 addressed to the Deputy Commissioner of Customs (Gr.VA), stated that they had imported a hardware (CPU) loaded with editing software, keyboard and a mouse and that they would be using a local monitor in conjunction with the imported system. In this letter, the importer also canvassed classification of the goods under SH 847....
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....g this request of the importer, the Deputy Commissioner (Assessing Authority) ordered that the entire system imported by them be assessed to duty on full value shown in the invoice in terms of SH 8543.89 of the CTA Schedule and SH 8543.90 of the CETA Schedule for purposes of basic customs duty and CVD respectively. The assessee's claim for classification of the first two items mentioned in the supplier's certificate under SH 8471.49 and for classification of the third item under Heading 85.24 was rejected. Aggrieved by the assessment order, the assessee preferred an appeal to the Commissioner (Appeals) but without any success. Hence the present appeal of the assessee. 2. After examining the records and hearing both sides, we find t....
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....is editing of cinematographic films etc. It is evident from the technical literature available on record that this function of editing involves automatic data processing. It is not a function other than data processing and, therefore, would not attract Chapter Note 5(E). In any case, the Revenue has not succeeded in showing that the above system, which was imported, admittedly, for the purpose of editing of cinematographic films etc., could be classified as an electrical machine/apparatus under the residual sub-heading 8543.89 under Heading 85.43. There is yet another software, viz. media workstation software, which remains to be classified. The appellant would like it to be classified under Heading 85.24 as computer software whereas the Re....
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....ision of the Apex Court, the learned SDR has rightly submitted that any application software etched on the hardware forming integral part of the automatic data processing system imported by the appellant should necessarily be classified along with the system as a single unit under Heading 84.71, if not under Heading 85.43. The learned counsel has contested the above argument of the SDR by relying on the Apex Court's decision in PSI Data Systems Ltd. v. CCE - 1997 (89) E.L.T. 3 (S.C.), wherein it was held that the value of software sold along with computer was not includible in the assessable value of the computer since there was a distinction between computer and software. The learned SDR has sought to distinguish the case of PSI Data Syste....