2000 (2) TMI 406 - AT - Central Excise

Summary

Issues:
Classification of software and manuals for duty rate determination.

Analysis:
The appellants filed multiple appeals against Order-in-Appeal No. 128/94, challenging the classification of software and manuals imported. The dispute arose as the importers classified software under one heading for concessional duty rate and manuals under another heading exempt from duty. The Assistant Commissioner upheld this classification, leading to a confirmed differential duty. The Order-in-Appeal under challenge also supported this decision.

The advocate for the appellants argued that previous Tribunal decisions allowed manuals to be classified separately under a duty-exempt category. However, the Revenue contended that the manuals and software were imported together as a set, making them inseparable for classification purposes. The Revenue emphasized that international trade practices treat software and manuals as a single set, not as individual items. The advocate countered by stating that manuals were optional items and should be classified separately.

The Tribunal noted the importance of manuals in loading and operating software, especially when containing essential key numbers. Without access to original import documents, the Tribunal could not determine the optional or necessary nature of the manuals in this specific case. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Assistant Commissioner for a fresh consideration. The Assistant Commissioner was directed to evaluate the import details, consider the appellants' claim of manuals being optional, and review the applicability of previous Tribunal decisions on similar matters.

In conclusion, the appeals were allowed for remand, emphasizing the need for a detailed reevaluation by the Assistant Commissioner considering the nature of the manuals in relation to the imported software.