TaxTMI 
TaxTMI 
2018 (8) TMI 1529
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....ssified the goods under the Customs Tariff Heading (CTH) No. 4907 0030, which covers "Documents of title conveying the right to use Information Technology Software". It however appeared to the department that the imported goods are actually "paper licences" for software and hence they are required to be classified under CTH No. 8523 8020 as ""Information Technology software". The appellants cleared the impugned items under protest under the classification insisted on by the department. They however filed an appeal before the Commissioner (Appeals), which in the first instance was remanded for issue of a speaking order which in turn culminated in an order No. 324/2010 dated 29.05.2010, holding that the classification of the licences imported....
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....per licences have been imported by the appellant. v) On the basis of representations made by the Industry Association, Board had issued a Circular No. 15/2011 dated 18.03.2011, which had interalia clarified that the paper licences which are essential documents conveying the right to use the software, and merits classification under CTH 4907. Hence, the controversy has been resolved by the Board's Circular in the appellant's favour. 3. On the other hand, the Ld. points out that the said Board's Circular has given two classifications one under CTH 4907 for paper licences and 4911 in case of PUK (Personal unlocking key) card. Since in the present case paper licences imported by the appellant would contain a personal unlocking key, this w....
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....g Key, usually in the form of a scratch card of paper board or plastic) that are used to convey the right to use such IT software. The software in these cases could be freely downloadable or loaded by the OEM supplier under an arrangement with the software company as pre-loaded trial version of software on the computer system requiring the customer to purchase license or PUK after the trial period. Typically these licenses are used either to authorize additional uses against a sale of IT software that has already taken place in the past or to service transactions where the connected software is downloaded electronically by the customer. It has been pointed out that some of the field formations are insisting on the classification of such doc....
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....of instructions, data, sound or image recorded in a machine readable form, which is capable of being manipulated or providing interactivity to a user. On the other hand, tariff item 49070030 of heading 4907 refers directly to "Documents of title conveying the right to use Information Technology software". Hence as per the said Rule 1 mentioned above, such paper licenses which are essentially documents conveying the right to use such IT software, merit classification under CTH 49070030. PUK cards on the other hand are not documents of title conveying the right to use Information Technology software per se but are actually printed matter containing numbers which when entered, enable the importer to access right to use such IT software. Hence ....