TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 628
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....:- Sl. No BE No. / Date Supplier / Description / CTH declared Unit price / Ass. Value Notfn. No. / Rate of duty Total duty paid 1 6045498 / 19.04.2018 Elbit Systems Ltd / Milestone No.1 Delivery of system requirement review document (PO-3054340), Qty - 1 No. CTH-49019900 $14,10,000 / 9,29,19,000 50/2017: Sl. No.301 BCD - 0%; SWC - 0%; GST - 5% (Sl.no.201) Rs.46,45,950 2 5715060 / 18.11.2019 MBDA UK Ltd / Milestone 2 - Submission of algorithm document for dynamic launch zone (PO-3054327), Qty - 1 No., CTH-49019900 GBP 43,24,000/ Rs.40,22,11,239 50/2017: Sl. No.302 BCD - 5%; SWC - 10%; GST - 5% (Sl.no.201) BCD - Rs.2,01,10,562; SWC - Rs.20,11,056; GST - Rs.2,12,16,643; Total: Rs.4,33,38,261 3 6171744 / 21.12.2019 Elbit Systems Ltd / Milestone No.2 Delivery of system documents (printed) (PO-3054340), Qty - 1 No., CTH-49019900 $14,10,000 / Rs.10,13,79,000 50/2017: Sl. No.302 BCD - 5%; SWC - 10%; GST - 5% (Sl.no.201) BCD - Rs.50,68,950; SWC - Rs.5,06,895; GST - Rs.53,47,742; Total: Rs.1,09,23,587 The above Bills of Entry wer....
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....-0 Total: Rs.3,75,917 The above Bills of Entry were filed for import of the goods described thereunder claiming the benefit of Sl.No.302 of the Notification NO.50/2017-Cus. dated 30.06.2017. Alleging that the classification declared and the exemption availed by the appellant under this Notification were not admissible, investigation was initiated; statement of one Shri G. Krishna Prasad, Senior Manager, Stores of the appellant was recorded and on completion of investigation, a show-cause notice was issued to the appellant on 29.07.2020 proposing reclassification of the product under CTH 49119990 and demanding differential duty of Rs.84,82,821/- with interest under Section 28AA and penalty under Section 117 of the Customs Act, 1962. On adjudication, the demand was confirmed with interest and penalty. Hence these two appeals. 3. At the outset, the learned advocate for the appellant has submitted that the appellant are engaged in research and design of aircrafts operated under the sovereign control of the Ministry of Defence. The appellant has nine research centres, of which two - Mission & Combat System Research Design Centre (MCSRDC) and Aircraft Research & Design Centre (ARDC....
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....the Department has referred to the judgments in the cases of Parasrampuria Synthetics Ltd. and Givo Limited. He has submitted that the documents imported in those cases were technical, literature in relation to bringing into existence the plant and machinery and carrying out manufacturing of goods. In the said case, plant and machinery were imported and those documents were relevant for installation and running of the plant and machinery. However, in the present case, there is no plant and machinery to which the imported documents can be related. Further distinguishing the judgment in the case of LML Ltd. [2010(258) ELT 321 (SC)], the learned advocate has submitted that in the said case, it is held that the plans and drawings drawn by hand are only covered under Heading 4906 and since the documents in the present case are not hand drawn, it is held that the goods are classifiable under CTH 4911. The said observation of the Department is incorrect. 5. The learned advocate has further submitted that the residual entry of a residual entry cannot be resorted to when a specific entry is available. Referring to the judgment in the case of Indian Metals & Ferro Alloys Ltd. Vs. CCE [199....
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....are essential to the business of the appellant; therefore, the goods are rightly classifiable under CTH 4901. 6. Per contra, the learned AR for the Revenue has submitted that issue to be decided is whether the engineering and technical documents imported by the appellant are to be classified under CTH 4901 or CTH 4911. He has submitted that the technical and engineering documents imported by the appellant are not simple printed books/printed material but are complex, sensitive and classified confidential documents. These technical details/ diagrams/designs are bound by stringent confidentiality agreements. These documents are for exclusive use of the appellant and cannot be shared with any other entity. The CTH 4901 covers books and other printed material which are available to the general public/professionals or students. However, in the present case, the goods being technical and engineering documents, thus, correctly classifiable under CTH 49119990. In support, he has referred to the following judgments:- i. CC, New Delhi Vs. Parasrampuria Synthetics Ltd. [2001(133) ELT 9 (SC)] ii. Givo Ltd. Vs. CC, New Delhi [2014(308) ELT 586 (Tri. Del.)] iii. Tou....
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....ools are provided to the customer for his own flight dynamics studies. Tools consist in Matlab scripts which enable parametric time simulations of the aircraft behaviour in flight, bused on the aerodynamic model identified from wind tunnel rotary tests. The present document is the user manual detailing the main features of the software, the installation process and the parametrization Some test cases are provided. 10. The relevant entry of the said Notification No.50/2017-Cus. dated 30.06.2017 under which exemption has been claimed reads as follows:- S. No. Chapter or Heading or sub- heading or tariff item Description of goods Standard rate Integrated Goods and Services Tax Condition No. (1) (2) (3) (4) (5) (6) 301. Any Chapter Commercial catalogues in book form Nil - - 302. 49011010, 49019100 or 49019900 Printed books (including covers for printed books) and printed manuals, in bound form or in loose-leaf form with binder, executed on paper or any other material including transparencies Nil - - 11. The Revenue denied the benefit of the said notification alleging that the goods imported ....
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.... Fibre claiming the benefit of Sl.No.10 of Notification No.25/1995-Cus. dated 16.03.1995. The Revenue authorities sought to classify the imported goods under Chapter 49.11 and denied the benefit of the said notification. In the context of the Notification No.25/1995-Cus., the Hon'ble Apex Court, framing the issue, observed as : 5. Significantly, in this appeal, we have to decipher the true intent and meaning of the words "printed books" and "manuals" as covered under Serial No. 10 as also "plan", 'drawing' and 'designs' as covered under Serial No. 15 of the concerned notification. Thereafter, their Lordships observed as follow:- 6. Let us first analyse as to the true grammatical meaning of the words included in Sl. No. 15 to wit : "plan, drawings and design", "Plan" in common acceptation means 'a drawing or diagram made by projections on horizontal plane'. The Law Lexicon attributes it to be a design or a sketch and is a draft or form of representation and its synonyms are sketch and design. Corpus Juris Secundum (Vol. 70) attributes a meaning in the similar vein as 'a draft or form or representation of a horizontal section of anything, as of machinery; a map .....
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....sue thus would be the nature of articles imported : now what these documents are. Admittedly in terms of the agreement between the parties, these documents cannot but be attributed to be technical know-how in the shape of drawing, design, plan and other literature. It is a literature of specification for a particular plant to manufacture Polyester, Polyester Filament Yarn and Polyester Staple Fibre. Even without adverting to the general trade parlance of the word 'book' and its known features, a plain look at the book itself denotes it to be a Installation and Planning Manual. The documents though loosely kept in a binder is known as Zimmer Documentation as regards the Fisher-Rosemount Systems. It is a technology transfer agreement which stands documented in a folder. The heading itself record "Installing CHIP Products and Application Software". The heading itself thus, indicative of not being a work of art by an author - it is a record of scientific progress achieved and this particular achievement is being transferred by way of Transfer of Technology Agreement between the two parties and thus, cannot but be termed to be a "technical know-how in the shape of a drawings, designs, c....
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....ormation including secret technical knowledge relating to the processes and their employment to the design, operation and maintenance of the plant, are classifiable under Chapter sub-heading 4901.99 of the Customs Tariff? (iii) Whether goods, as described in (a) & (b) above, can be considered as "Printed Book" classifiable under Chapter 49 of the Customs Tariff in order to avail the benefit of Notification Nos. 107/93-Cus. and 38/94-Cus.?" 16. After analysing the Chapter Notes and HSN Notes of Chapter Heading 49.01 and 49.11, the relevant exemption Notifications, the three Judge Bench of the Hon'ble Apex Court proceeded to examine the two Bench judgment in the case of CC, New Delhi Vs. Parasrampuria Synthetics Ltd. (supra) and observed as follows:- 31. No doubt this Court in an appeal against the order passed by the Larger Bench reversed the decision of CEGAT. The question, however, is whether the order passed by a two Judge Bench in Parasrampuria Synthetics Ltd. lays down correct law on the point. Analysing the judgments of various courts and also the dictionary meaning of 'book', their Lordships observed as:- 50. In our opinion, the Counsel is rig....
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....tics Ltd.'s case, their Lordships observed as follows:- 53. In our opinion, all these questions have to be considered and decided by the CEGAT in the fact-situation of the case in hand. As already noted by us, some of the tests applied in Parasrampuria Synthetics Ltd. were not relevant and appropriate. The CEGAT will now consider the ratio in Parasrampuria Synthetics Ltd. in the light of the observations made by us in this judgment and decide the issue raised in the instant case. Further, laying down the guidelines in arriving at the correct classification of the goods between Chapter 4901 and 4911, their Lordships observed as follows:- 54. The matter could be looked at from another angle also. As noted earlier, HSN has dealt with the point and as per Explanatory Note, it would fall under Chapter Heading 49.01. If it is so, it would not be covered by sub-heading 4911.99. 55. In this connection, we may refer to a three-Judge Bench decision of this Court in Collector of Central Excise, Shillong v. Wood Craft Products Ltd. - 1995 (77) E.L.T. 23 (S.C.) = (1995) 3 SCC 454. The Court, in that case, considered the question whether 'plywood' was classifiable u....
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....g to the Company, the case is covered by the main entry under 49.01, and in that view of the matter, one cannot consider the residual entry 49.11. Finally, while remanding the matter, it is observed as:- 60. In our considered opinion, all these contentions raised by the assessee have to be dealt with and decided in the light of relevant statutory provisions of the Act and the Rules as also on the basis of decided cases on the point. As CEGAT has disposed of all the appeals merely on the basis of Larger Bench decision in Parasrampuria Synthetics Ltd. and has not considered rival contentions on merits nor recorded findings thereon, it would be appropriate and in the fitness of things to remit the matters to CEGAT, now to Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to decide them on all points in accordance with law in the light of observations made in this judgment. 17. A plain reading of aforesaid observations of the Hon'ble Supreme Court, it is crystal clear that while deciding the classification of technical materials/literatures, drawings, designs, plans etc. as to whether the same would fall under the Chapter heading 49.01 or under 49.11, due empha....
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....ed sheets, or even of single sheets. These include publications such as shorter scientific theses and monographs, instruction notices, etc., issued by government departments or other bodies, tracts, hymn sheets, etc. This group excludes printed cards bearing personal greetings, messages or announcements (heading 49.09), and printed forms which require the insertion of certain additional information for completion (heading 49.11). (C) Textual matter in the form of sheets for binding in loose-leaf binders. The heading also covers: (1) Newspapers, journals and periodicals bound otherwise than in paper, and sets of newspapers, journals or periodicals comprising more than one number under a single cover, whether or not containing advertising material. (2) Bound picture books (other than children's picture books of heading 49.03). (3) A collection of printed reproductions of works of art, drawings, etc., with a relative text (for example, a biography of the artist), put up with numbered pages and forming a whole suitable for binding. (4) A pictorial supplement accompanying, and subsidiary to, a bound volume conta....
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....res and photographs remain classified in this heading when the essential character of the whole is given by the pictures or photographs; in other cases such articles are to be classified in the heading appropriate to the frames, as articles of wood, metal, etc. Certain printed articles may be intended for completion in manuscript or typescript at the time of use but remain in this heading provided they are essentially printed matter (see Note 12 to Chapter 48). Thus, printed forms (e.g., magazine subscription forms), blank multi-coupon travel (e.g., air, rail and coach) tickets, circular letters, identity documents and cards and other articles printed with messages, notices, etc., requiring only the insertion of particulars (e.g., dates and names) are classified in this heading. Stock, share or bond certificates and similar documents of title and cheque forms, which also require completion and validation are, however, classified in heading 49.07. On the other hand, certain articles of stationery with printing which is merely incidental to their primary use for writing or typing are classified in Chapter 48 (see Note 12 to Chapter 48 and in particular the Explanato....
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....tions on one surface (heading 70.09 or 70.13). (e) Printed "smart cards" (including proximity cards or tags) as defined in Note 4 (b) to Chapter 15 (heading 85.23). (f) Printed dials of instruments or apparatus of Chapter 90 or 91. (g) Printed paper toys (e.g., children's cut-out sheets), playing cards and the like, and other printed games (Chapter 95). (h) Original engravings, prints and lithographs, of heading 97.02, that is, impressions produced directly, black and white or in colour, of one or of several plates wholly executed by hand by the artist irrespective of the process or of the material employed by him, but not including any mechanical photo-mechanical process. 19. A careful reading of the HSN Notes relevant to Chapter 49.01, it could be discerned that Clause (A) explains books and booklets consisting essentially of textual matter of any kind, and printed in any language or characters, including Braile or shorthand. What has included also explained in the said Clause. More particularly, Clause (B) explains brochures, pamphlets and leaflets, whether consisting of several sheets or reading matter fastened together (e.g. stapled),....