TaxTMI 
TaxTMI 
2015 (6) TMI 188
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....he said goods are classifiable under sub-heading 8524.00 and are chargeable to nil rate of duty. The said sub-heading covers "software". The Revenue, on the other hand, is of the view that the said goods are classifiable under sub-heading 8524.90 and are chargeable to duty @16%. The said sub-heading is a residuary sub-heading and covers "Other". 2. The learned counsel for the appellant's main contention was that the goods being manufactured are nothing but software. Heading 85.24 covers Gramophone records which are used for recording the sound. This also covers audio tapes and cassettes which are also used for recording of sound. Video cassettes and tapes are used for recording sound and image and magnetic disks are used for recordin....
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.... reported in 2004 (168) ELT 115 (Tri. - Bang.), and (iii) CC, Chennai vs. Pentamedia Graphics Ltd. reported in 2006 (198) ELT 164 (SC). 3. The learned AR, on the other hand, submitted that MP3 format is only a format of recording audio songs and under the said format, the songs are recorded in the compressed format and can be played on any player having the MP3 facilities. It was further submitted that it is incorrect to say that this is an interactive software. No data can be manipulated on the said CD-ROM. Just switching over from one song to other, cannot be called as manipulation of the data. Such a thing can be done even in the audio cassette by fast forward facilities etc. The learned AR also submitted that certain literature do....
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....atrices and masters for the production of records, but excluding products of Chapter 37 8524.10 - Gramophone records 16% 8524.20 - Software Nil - Magnetic tapes: 8524.31 - Audio tapes in any form 16% 8524.32 - Audio cassettes 16% 8524.33 - Video tapes in any form 16% 8524.34 - Video cassettes 16% 8524.39 - Other 16% 8524.40 - Magnetic discs 16% 8524.90 - Other 16%" It would be seen from the above heading that 85.24 covers records, tapes and other recorded media. Thus the essential thing is that the heading covers the recorded media. It i....
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....factured in that case were interactive in nature and were thus an item of software. Similarly, in the case of ITI Ltd.(supra), it was found that application software were also recorded in the CD-ROM along with documentation and, therefore, it was held that the same would be considered as software. It was also observed in the case law that the meaning of the terms 'software' under Chapter sub-heading 8524.20 should be according to its popular meaning or meaning attached to it by those dealing with it or as understood by the common parlance. In the case of Pentamedia Graphics Ltd. (supra), the Hon'ble Supreme Court has observed that the data recorded was capable of being manipulated by means of an automatic data processing machine....
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....a compact disk falls within the meaning of the term software. It is needless to reiterate that data at issue in this case are images of drawings and designs intended to be used for engineering projects, therefore, the core issue to decide is whether such drawings, designs intended to be used for engineering projects be termed "software" so as to entail the benefit of the aforesaid Notification 17 / 2001 Cus dated 1.3.2001. 21. There can be no doubt that such engineering drawings and designs do not provide instructions for the computer hardware to perform. At best, the said drawings and designs can be said to be are by-products and outputs of the computer software, which generate the designs and drawings. Therefore, such engineering drawi....