TaxTMI 
TaxTMI 
2015 (9) TMI 714
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....e high value of the consignment decided to examine the consignment. Accordingly the goods were examined by the shed staff under supervision of Asst Commissioner of Customs in the presence of the representative to of CHA. On opening the consignment, in addition to the drawings and designs printed on paper, one number CD was also found. On being asked to explain the contents of the CD the appellant informed the departmental authorities that they had placed an order for supply of designs and drawings for construction of ship and had not placed any order for supplying designs and drawings on CD. Customs authorities not convinced with the explanation given conducted an investigation and after recording various statements came to a conclusion that appellant had tried to evade duty by mis-declaring the description of the goods imported. A show cause notice was issued for classification of the CD under CTH 8523 8020 as liable for duty, show cause notice also sought to claim interest as also for imposition of penalty on the import the appellant. The appellant contested the show cause notice on merits making submissions that they had placed an order for design and drawings in CD form, even i....
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....t of Shri Vipul Shrivastava very clearly brings on record that the CD can be manipulated provides interactivity to the user in an automatic data processing machine. He would also demonstrate before us the manipulation that can be resorted to the data on the CD by using software "AutoCAD". It is his submission that entire data on the CD viewed in different dimension, for example measure the length of the drawings of the, zoom on a particular area of the drawings, manipulate the length and breadth of the ship, rearrange the machineries. It is his submission that the design and drawings have been recorded in machine readable form and they are capable of manipulation and also provide for interactivity to the user in and automatic data processing machine. He would also demonstrate before us that the dimension in the drawings can be measure, increased or decreased either for length and or breadth, machineries can be rotated, moved, mirrored and trimmed for redesigning the vessel if required. It is also submission that the entire drawings could be transmitted in a soft copy interdepartmentally is in itself an example of the data being manipulatable. He would submit that the adjudicating a....
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....ed the submissions made at length by both sides and perused the records. 7.1 The issue in dispute in this case is whether the designs and drawings imported by the appellant in printed form and as also sent by the supplier in CD is liable to Customs duty or otherwise. 7.2 Undisputed facts are that appellants had in fact ordered for designs and drawings in hardcopy. Purchase orders placed clearly indicate for the supply of designs and drawings in hardcopy. When the goods were examined it was noticed that in addition to hardcopy, CD was found in the package. The said CD was opened on a laptop before the Customs authorities and it contained the designs and drawing in machine readable format. 7.3 It is a case of the revenue that appellant has mis-declared the consignment by importing CD with the printed form of designs and drawings. It is the case of the appellant that they had not ordered for the designs and drawings in CD, which we find as correctly submitted. This conclusion is based on the perusal of the purchase orders placed by the appellant to the supplier of designs and drawings. The two work orders dated 18.6.2012 issued by the appellant clearly stipulate as under:- ....
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.... consider the supplementary note to chapter heading number 8523 which is as under. Supplementary Note: For the purposes of heading 8523, "Information Technology software" means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine. (emphasis supplied) It can be seen from the above reproduced note that the information contained in the CD in question is definitely a data, image and is recorded in machine readable form. It is not the case of the revenue that the data on the CD is not machine readable. The date on the CD if is read in an automatic data processing machine would mean that the data on the CD is machine readable. The CD containing the designs and drawings is definitely satisfying the first limb of the definition of information technology software. The term "information" has been defined in section 2(1)(v) of the information technology act, 2000 to include data, message, text, images, sound, voice, codes, computer programs, software and data b....
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....Mr. Vipul Srivastav, Deputy General manager in his statement dated 13.8.2012. We therefore find that the features of AUTOCAD software, as demonstrated before us, are consistent with the evidence on record. We find considerable substance in the argument that a drawing in a "soft" form which enables a user to view cross section when used to in conjunction with AUTOCAD software is information technology software, providing interactivity to the user as well as being capable of manipulation. 7.7 We find that the data on the CD imported is capable of manipulation as was demonstrated before us. We find that the design and drawings of the vessel on the CD can be manipulated in the computer to change the length and the breadth, repositioning of the machineries like engine, cabin, tank and a conclusion can be reached as to the correct design that needs to be presented to the clients and also for arriving at the conclusion as to how the ship or vessel will appear to a purchaser. In our view, the demonstration which was presented before us would indicate that the data or images on the CD are capable of being manipulated by an automatic data processing machine, by a software known as "AutoCA....
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....ramming aids are also known as software and thus the goods in question would fall within the meaning of the word "software". The goods under import are admittedly data recorded on tapes. Under the existing Notification No. 20/99 any kind of data in a machine readable form and capable of being manipulated by means of an automatic data processing machine would be covered by the term "Information Technology Software". 15. For the reasons stated above, the goods under import are computer software recorded in a machine readable form and capable of being manipulated by means of an automatic data processing machine. We do not find any infirmity in the impugned order of the Tribunal." We find that the above ratio has been followed by this bench in the case of Gayatri Impex Ltd. (supra). 7.9 The adjudicating authority as well as the special Counsel for the revenue has heavily relied on the judgment of the Apex Court in the case of LML Ltd. (supra) to hold against the appellant. On the first blush, we would have also agreed with the propositions as put forward by the learned Counsel, but on careful reading of the judgment of the Apex Court, we find that the case of LML Ltd., t....
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.... and attracts 'nil' rate of duty as per Customs Tariff. The requirements of supplementary note to Chapter 8523 are therefore satisfied. Since designs and drawings in paper form as well as in the CD form attract nil rate of duty, the finding of the Commissioner about the applicability of section 19 of the Customs Act, 1962 becomes irrelevant since the rate of duty applicable to both goods even assuming them to be constituting a set, is 'nil' in view of the classification determined by us. The question whether a separate value could be attributed to the CD also becomes irrelevant in view of the classification under Heading 85238020 of the Tariff. 7.12 As we have disposed of the appeal on merits as recorded hereinabove, we are not recording any findings on the various other submissions made by both sides before us on other points. 8. In view of the foregoing and the judicial pronouncements more akin to the facts and circumstances of this case, in our view the impugned order is unsustainable and is liable to be set aside and we do so. The impugned order is set aside and appeal is allowed with consequential relief if any. (Pronounced in Court on 18/5/2015) ==....
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....o the current one. For the purpose of this option, up to 10 views are saved so that the last ten views can be recalled. This option Document 4Zoom Realtime Zoom All All Realtime A very me you use the scroll bar, which is one reason to avoid the scroll bars for panning a lot in your Zoom Realtime provides interactive zooming capability. Pressing (after entering zoom) on the command line automatically places you in Realtime mode. Hold the left mouse button down at the midpoint of the drawing and move the cursor vertically to the top (positive direction) of the window to zoom in up to 100% (2x magnification). Hold the left mouse button down at the midpoint of the drawing and move the cursor vertically to the bottom (negative direction) of the window to zoom out to 100% (.5x magnification). You cannot zoom out beyond the extents of the current view. When you release the pick button, zooming stops. You can release the pick button, move the cursor to another location in the drawing, and then press the pick button again and continue zooming from that location. To exit Realtime Zoom mode, press or (ESC). This option causes AutoCAD to display the whole drawin....