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TMI Blog2006 (7) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... Chennai. 2. The brief facts of the case are as under :- The appellants had imported goods prescribed as 'TCH Sys Mgmt S/W for W95/WNT', 'Hiper Access Router 10/100', 'Hiper DSP Mgmt S/W for W95/WNT' 'ENH S.W. TCM' 6.0' and filed 4 Bills of Entry and sought clearance under CTH 852429 read with Customs Notification 20/99 (Sl. No. 231). The Departmental officers conducted certain investigations and came to the conclusion that the items imported cannot be given benefit of exemption Notification No. 20/99 (SI. No. 231) as they are parts of the 'remote access server system'. The Original authority has given the following reasoning to deny the benefit of exemption Notification. "Para 16. ... So, in the present case the software are specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y liability of Rs. 2,13,65,545/-. The Commissioner (Appeals) upheld the order of the Original authority. The appellants approached this Tribunal for relief. The appellants strongly challenged the findings of the lower authorities. 3. S/Shri K.S. Ravi Shankar and N. Anand, learned Advocates appeared for the appellants and Shri K. S. Reddy, learned JDR appeared for the Revenue. 4. Shri K. S. Ravi Shankar, learned Advocate made the following submissions :- (i) The appellants imported software in the form of Compact Disks (CDs) and Floppy Disks. In respect of all these items, the impugned order has proceeded to construe the same as parts of Telecommunication Equipment. This is unsustainable as per law. (ii) The whole issue is no longer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not properly appreciated the opinion in the proper perspective. The impugned order is therefore not sustainable in law. The following case laws were relied on :- (a) Assistant Collector of Customs v. Soorajmull Nagarmull [2000 (125) E.L.T. 328 (Cal.)] (b) P. Seenakamalam v. GOI [2000 (123) E.L.T. 103 (Mad.)] (v) The software imported by the appellants and supplied to VSNL entirely falls within the definition of Information Technology Software as per Explanation appended to Sl. No. 231 of Notification No. 20/99-Cus. (vi) The lower authorities have overlooked the Chapter Note No. 6 to Chapter 85 which provides that - "Records, tapes and other media of heading 8523 or 8524 remain classified in those headings, when they are presented ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... system namely remote access software can function without this software. For this, the reply is that: "Since the S/W is purely management in nature, it does not contribute to the basic function of RAS. This function is taken care by Firmware loaded with Hardware Unit. The RAS needs the s/w to function." However, in clarification for query No. 4 which is whether the software item can be considered as parts and parcel of the hardware, the reply is that : "Yes. The software items are considered as part and parcel of the RAS System." On the one hand, M/s. VSNL says that the software does not contribute to basic function of the RAS. However, they maintain that it is parts and parcel of RAS system. These things have not been properly gone ..... X X X X Extracts X X X X X X X X Extracts X X X X
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