TaxTMI 
TaxTMI 
2013 (11) TMI 1479
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....goods "Watchguard Hardware", "Watchguard Software" and "Watchguard User Software" and paid duty under Customs Tariff Heading 8473.30. Subsequently, the appellant filed refund claim under Section 27 of the Customs Act, 1962 on the ground that they have deposited the duty wrongly on Watchguard Software. According to them, the goods were classifiable under 8524 and eligible for the exemption under Customs Notification No. 17/2001-Cus., dated 1-3-2001. The lower authority rejected the refund claim holding that the goods were correctly classified under 8473.30. Commissioner (Appeals) upheld the adjudication order. Hence this appeal was filed by the appellant. 3. The learned counsel for the appellant submits that Watchguard, Firebox-II So....
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....jaleem Enterprises Pvt. Ltd. v. Commissioner of Central Excise, Ahmedabad reported in 2006-TIOL-06-SC-CX = 2006 (194) E.L.T. 129 (S.C.). 5. After hearing both sides and on perusal of records, we find that the appellant placed the purchase order dated 8-2-2001 for Watchguard Security product. It is seen from the commercial invoices and bills of entry that the goods were invoiced in different parts, for example, (i) Watchguard Firebox-II Software, (ii) Watchguard SOHO Software, (iii) Watchguard SOHO Software -w/10-user license and VPN option, (iv) Watchguard SOHO Upgrade to 25 user Software license and (v) Watchguard Web Blocker for SOHO and SOHO Software user license. 6. The goods were assessed under sub-heading 8473.30 as "p....
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....rity products of US$ 50009.00 whereas in the commercial invoices and bills of entry, the value was artificially split. 9. In the case of M/s. Bharati Airtel (I) Ltd., (supra), it has been observed that there is no justification to disintegrate the pre-loaded software from the imported equipment and grant it separate status to classify the goods under Chapter 8524 and to exclude its value "which was artificially split from the composite value of the equipment" to arrive at the value of the equipment. In the case of Anjaleem Enterprise Pvt. Ltd. (supra), the Hon'ble Supreme Court observed that in embedded systems, the software resides in ROM IC chips. Embedded systems are combination of hardware and software. They form the integral pa....
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....the Department is right in treating the laptop as one single unit imported by the respondent. The Department has rightly classified the laptop as a unit under CTH 84.71, quoted above." 11. Even in the above situation where the software is easily portable the Hon'ble Court did not allow plea for separating the cost of software from the cost of hardware. In the present case the software was etched and was not portable to any other hardware and hence has no separate existence. The Counsel has made arguments showing product literature showing capability of the device to alert about software updates and to suggest recommended configuration. According to him this would imply that the software was separate commodity. This argument is not c....