9911796707
|
Home
Issues:
Stay application against demand confirmation, duty on software value, suppression of facts, show cause notice contestation, software essential for equipment, value enhancement, declaration of software, modus operandi for assessable value reduction, operational software distinction, evidence of software recording, Supreme Court precedents, waiver of pre-deposit, out of turn hearing. Analysis: The judgment pertains to a stay application against the confirmation of a demand amount and penalty, along with equipment confiscation, due to alleged suppression of facts regarding software essential for imported mobile telephone equipment. The revenue authorities contended that the software on compact discs was a modus operandi to reduce the assessable value. The applicants argued that they had imported the necessary software along with back up, duly declared to the authorities. They cited the Acer India Ltd. case to support their position. The revenue, however, relied on the Hewlett Packard India Sales Pvt. Ltd. case to assert that software loaded on hardware should be included in the value. Upon thorough consideration, the Tribunal found that the imported equipment indeed included essential software and that the compact discs served as backup in case of system failure. Citing the Acer India Ltd. case, the Tribunal concluded that the revenue's reliance on the Hewlett Packard India Sales Pvt. Ltd. case was misplaced. Additionally, the arguments raised by the revenue were not part of the show cause notice. As a result, the Tribunal deemed that the applicants had established a prima facie case for the waiver of the amount in question. Consequently, the application for the waiver of pre-deposit was granted, and recovery was stayed pending the appeal's disposal. Given the substantial amount involved in the case, the Tribunal directed the appeal to be listed for an out-of-turn hearing in July 2008. The judgment was pronounced on April 23, 2008, by the Tribunal.
|
