TaxTMI 
TaxTMI 
2006 (7) TMI 62
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....clearance under CTH 852429 read with Customs Notification 20/99 (Sl. No. 231). The Departmental officers conducted certain investigations and came to the conclusion that the items imported cannot be given benefit of exemption Notification No. 20/99 (SI. No. 231) as they are parts of the 'remote access server system'. The Original authority has given the following reasoning to deny the benefit of exemption Notification. "Para 16. ... So, in the present case the software are specifically catered to the hardware to carry out a specific and particular task without the aid support integration of the software the remote access server integration of the software the remote access server imported at Bangalore Commissionerate will not discharge t....
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.... and N. Anand, learned Advocates appeared for the appellants and Shri K. S. Reddy, learned JDR appeared for the Revenue. 4. Shri K. S. Ravi Shankar, learned Advocate made the following submissions :- (i) The appellants imported software in the form of Compact Disks (CDs) and Floppy Disks. In respect of all these items, the impugned order has proceeded to construe the same as parts of Telecommunication Equipment. This is unsustainable as per law. (ii) The whole issue is no longer res integra as catena of the Apex Court judgments held that software imported in the form of CDs/Floppy Disks is movable goods which are legally and commercially recognized as separate and independent commodity. The following decisions were relied on :- ....
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....er is therefore not sustainable in law. The following case laws were relied on :- (a) Assistant Collector of Customs v. Soorajmull Nagarmull [2000 (125) E.L.T. 328 (Cal.)] (b) P. Seenakamalam v. GOI [2000 (123) E.L.T. 103 (Mad.)] (v) The software imported by the appellants and supplied to VSNL entirely falls within the definition of Information Technology Software as per Explanation appended to Sl. No. 231 of Notification No. 20/99-Cus. (vi) The lower authorities have overlooked the Chapter Note No. 6 to Chapter 85 which provides that - "Records, tapes and other media of heading 8523 or 8524 remain classified in those headings, when they are presented with the apparatus for which they are intended." The impugned order is c....
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.... For this, the reply is that: "Since the S/W is purely management in nature, it does not contribute to the basic function of RAS. This function is taken care by Firmware loaded with Hardware Unit. The RAS needs the s/w to function." However, in clarification for query No. 4 which is whether the software item can be considered as parts and parcel of the hardware, the reply is that : "Yes. The software items are considered as part and parcel of the RAS System." On the one hand, M/s. VSNL says that the software does not contribute to basic function of the RAS. However, they maintain that it is parts and parcel of RAS system. These things have not been properly gone through by the lower authorities. The point is whether the impugned....