TaxTMI 
TaxTMI 
2026 (7) TMI 1466
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....M/s Solution Infotech India Private Limited [the appellant], the importer, filed a Home Consumption bill of entry no. 476276 dated 08.06.2009 through their authorized CHA M/s ECM Services Pvt. Ltd. for clearance of Hardware against Software Piracy [HASP] declaring as Hardware Locks imported from M/s Aladdin Knowledge Systems Ltd., Israel. The FOB value of each lock was declared as US$ 3 per piece and the total assessable value for the whole consignment as Rs. 1,19,219.20. On being inquired, the importer/appellant vide letter dated 22.06.2009 conveyed that they had been regularly downloading DCM software licenses for the imported hardware locks (dongles) through internet. They were not paying the duty on the cost of the software. However, ha....
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....o have not been sent to the correct assessing authority. Being aggrieved of the said order that the appellant is before this Tribunal. 4. The appellant was not present on the date of hearing. Earlier the matter was finally heard on 03.07.2025 and the order was reserved. However, after it got relisted, the learned counsel for the appellant had requested for e-hearing and the appeal was allowed to be heard by virtual mode for final submissions on 09.07.2026. Non-appearance of appellant in the said circumstances for an appeal of the year 2013 was observed to be a sufficient reason to proceed to hear the submissions on behalf of the department in the absence of the appellant and to dispose of the appeal in compliance of decision of Hon'ble S....
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....dustries (North India) Pvt. Ltd. vs Commissioner of Customs (General) reported as 2022 (382) ELT 541 (Tri. Del) are relied upon. The later decision is mentioned to have been affirmed by the Hon'ble Supreme Court in the decision reported as 2023 (386) ELT 13 (SC). Finally it is alleged that the demand in question is time barred for the reason that intimation regarding downloading of software licenses has duly sent to the department well in time. That the order under challenge has thus been prayed to be set aside. 5. Learned authorized representative appearing for the department has also reiterated the submissions filed at the time of previous hearing and the findings arrived at in the impugned order. In addition, the decision of the Hon'b....
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....ough the banks. It becomes clear that the hardware as well as the software has been imported from the same vendor, though at a different point of time, but are customized and specific to each other. 8. Whether in the facts and circumstances value of both i.e. HASP hardware and DCM software license in question collectively form the assessable value, as alleged by the department, or it is the value of imported hardware only which is subjected to customs duty, as claimed by the appellant. Foremost, we have perused section 14 of the Customs Act which deals with valuation of imported goods. Section 14 reads as follows: "14. Valuation of goods.- (1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for th....
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....may be, where the proper officer has reason to doubt the truth or accuracy of such value, and determination of value for the purposes of this section: Provided also that such price shall be calculated with reference to the rate of exchange as in force on the date on which a Bill of Entry is presented under Section 46 or a shipping bill of export, as the case may be, is presented under Section 50. (2) Notwithstanding anything contained in sub-section (1), if the Board is satisfied that it is necessary or expedient so to do, it may, by notification in the Official Gazette, fix tariff values for any class of imported goods or export goods, having regard to the trend of value of such or like goods, and where any such tariff va....
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....s that normal price would be the sole consideration for the sale. However, this may be subject to such other conditions which can be specified in the form of Rules made in this behalf. 11. From the above statutory position of law and the admitted facts, it becomes clear that each DCM software being the integral and specific part of the respective imported product, both being purchased from the same supplier at same point of time. It is, accordingly, held that the transaction value in the present case is the value of hardware as well as respective software. Hence, the value of software is includible in the assessable value. We draw once support from the decision of the Hon'ble Supreme Court in Hewlett Packard India Sales (P) Ltd. (supra) ....