2015 (1) TMI 1030

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....sed a penalty of Rs. 1.00 crore on the appellant importer, M/s. ABG Shipyard Ltd. The goods have also been confiscated with an option to redeem the same on payment of redemption fine of Rs. 3.50 crores under Section 125 of the Customs Act, 1962. Aggrieved of the same, the appellant is before us. 2. The learned Counsel for the appellant submits that they are manufacturers of ships. They had placed orders on M/s. Nordiac Marine L.L.C. UAE for supply of designs and drawings for Hull No. 397 & 398 to be manufactured by them. Purchase order placed by them clearly indicates that the drawings needs to be despatched in "hard copy" by air cargo mode only and airway bill presented for negotiations. The invoices issued for the transaction also indi....

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.... mistake. The learned Counsel also points out that even if it is held that the appellant had placed order for CD containing the drawings and designs, since the CD is interactive, it would merit classification as IT software under CTH 85238090 and would be full exempt under Serial No. 266 as customized software under Notification No. 12/2012-CE. Therefore, the impugned demands are completely unsustainable in law. The learned Counsel also submits as per the provisions of Section 23(2) of the Customs Act, 1962, the importer has the right to relinquish the title to the goods before the order for clearance for home consumption is made and in the present case, the goods are lying with the department and the out of charge order has not been issued....