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Issues:
- Eligibility for exemption from auxiliary duty of customs for imported software in source code in the form of running computer sheets. Analysis: 1. Issue of Eligibility for Exemption: The central issue in this case was whether the imported software in source code, presented as running computer sheets, qualified for exemption from auxiliary duty of customs under Customs Notification No. 139/90. The Additional Collector of Customs had previously ruled against the appellants, stating that the software did not meet the criteria outlined in the notification, specifically Serial No. 23. The Collector emphasized that the software did not resemble printed books or sheets designed for binding and thus did not qualify for the exemption. 2. Interpretation of Customs Tariff Schedule: The appellants argued that the imported software should be considered as printed books under Chapter Note 4(c) to Chapter 49 of the Customs Tariff Schedule. They contended that the running computer sheets constituted printed parts of books or booklets designed for binding, as mentioned in the statutory note. The appellants highlighted that the absence of page numbering and the software not being bound were not sufficient reasons to exclude them from classification as printed books. 3. Legal Interpretation and Application: The Tribunal analyzed the contentions of both parties and examined the relevant legal provisions. They concluded that the running computer sheets could be deemed as constituting a printed book under Chapter Note 4(c) to Chapter 49. The Tribunal emphasized that the term "printed books" in the notification should be interpreted in line with the definitions and aids provided in the Tariff Schedule. They invoked Section 20 of the General Clauses Act to support their interpretation, emphasizing that the meanings of terms in notifications should align with those in the governing regulations unless explicitly stated otherwise. 4. Decision and Ruling: Considering the arguments and legal framework, the Tribunal set aside the previous order and granted the appellants the consequential benefit of the exemption from auxiliary duty of customs. The Tribunal's decision was based on the interpretation of the relevant legal provisions and the classification of the imported software as printed books under the Customs Tariff Schedule. The ruling favored the appellants, allowing them to benefit from the exemption as per Customs Notification No. 139/90.
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