TaxTMI 
TaxTMI 
2026 (2) TMI 343
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.... which rejected the value declared by the Appellant in respect of the networking equipment imported during the period July 2006 to April 2010, and re-determined the assessable value. Consequently, it confirmed a demand of differential duty amounting to Rs.39,77,717/- under the proviso to Section 28(1) of the Customs Act, 1962, along with applicable interest. The goods so imported were ordered to be confiscated under Section 111(m) of the Customs Act, 1962, and a penalty equal to the differential duty was imposed on the Appellant under Section 114A of the Customs Act, 1962. The Adjudicating Authority further appropriated an amount of Rs. 40,00,000/- already paid by the Appellant during the course of investigation towards the confirmed differ....
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....CN proposals came to be confirmed vide Order-in-Original dated 19.12.2012 without granting the Appellant an opportunity of personal hearing. Aggrieved by the same, the Appellant preferred an appeal before the Commissioner (Appeals-1), Chennai, who, vide Order-in-Appeal dated 30.09.2015, upheld the demand but failed to record any finding on the Appellant's specific plea regarding denial of personal hearing and violation of natural justice. The Commissioner (Appeals-1), Chennai, further proceeded on the assumption that the software was embedded, holding that the true transaction value was the aggregate of hardware and software, without examining the technical evidences advanced by the Appellant. 6. Furthermore, during investigation, an....
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....e of software that a device's hardware comes pre-loaded with. It serves as the interface between higher-level software applications and the device firmware is retrieved from a non-volatile hardware. Normally, memory device such as ROM (Read-Only Memory), EEPROM, Flash memory, and so on. Embedded software is in marked contrast to firmware because it is a type of software that is designed to work in a system that has a dedicated device; that is, computing systems inside devices that are not classified as a computer. Compared to firmware, embedded software is intricate, multifunctional, and at times, even houses an operating system. Further that the software in question has been preloaded in the hard disk contained in the hardware. It is n....
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....the same, following the same, we hold that the value of the software is includable in the value of the hardware imported and as such the confirmation of duty in this regard is upheld. It is also seen in the ITI Ltd. (supra) decision, that it has been held that there is a thin line of distinction and that the error was bonafide. Even in the present case, it is not alleged that the appellants have supressed the import of the software. Merely due to their understanding, have chosen to dissect the value of hardware from that of the software. Therefore, we are of the view that no suppression with an intent to evade payment of duty can be alleged in the facts and circumstances of the present case. 12. In our view, the issue herein is interpret....