2002 (2) TMI 192

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....6-98 was issued demanding duty amounting to Rs. 3,87,896/- on the ground that "As per Ministry's clarification circular the exemption under Serial 173 of Notification No. 11/97 is applicable to software required for operation of a data processing machine falling under Heading 84.71 only. Hence the concession cannot be applied to other softwares". 2. The lower authorities came to the conclusion that a write up submitted related to 'computer software' voice message system and at page 3.3 of the said write up indicated as computer is a power multi application voice processing software, so it would be called an application software for voice mail card which form part of EPABX and since Notification 89/95 clearly states that benefit und....

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....tware for assessment purpose. 04.04   As regards the contention of the appellant that the inclusion clause in the explanation relates to software which is installed in a machine other than a data processing machine and as in their case the software installed inside the computer forms a part or accessory of the computer, the item imported is a computer software, it may be noted that as the criteria adopted for categorizing a software as a computer software (for the purpose of Customs Notification) is the specific function of the software and the common parlance meaning and not the place of installation of the same, the contention is not technically correct and legally acceptable. 04.05   Similarly, the other content....

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....rieved subsequently, an extension from the EPABX activates the software, which then converts the digital data stored in the analog form and transmit the same through the voice mail card to the EPABX. The software processes the data entering into a computer and convert it from analog to digital and vice-versa. Since it is used inside the computer in Tandem itself computer software under Heading 8524.90 of the Customs Tariff Act and entitled to the benefit of Notification No. 11/97, dated 1-3-97. The lower authorities' conclusion about the exclusion clause of Notification No. 11/97 introduced by Notification 3/98 with effect from 11-2-98, which by an explanation which reads as "computer software" means any representation of instructions, data....