9911796707
TMI Blog2007 (11) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... Member (T) [Order per: T.K. Jayaraman, Member (T)]. -1. Revenue has filed this appeal against the Order-in-Appeal No. 145/2004/Cus., dated 17-12-2004 passed by the Commissioner of Customs (Appeals), Bangalore. 2. The respondent imported goods described as HP server for testing (data processing equipment) against invoice placed by M/s. Microsoft Corporation, USA.. The department got the equipment inspected by a Chartered Engineer. He opined that the item imported is a model "hp workstation ZX 6000" and server appears to have been used for around 3 years and has a residual life of around 10 years. Further, he had indicated the fair market value of the item as US Dollar 3000/-. Revenue proceeded against the respondent on grounds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000/-. Revenue is aggrieved over the finding of the Commissioner that the restriction in the Exim Policy is not applicable to server. In the Revenue's appeal elaborate reasons have been given to show that the server is also a computer and therefore any restriction applicable to computer is also applicable to a server. The learned Departmental Representative reiterated the grounds of appeal. The representative of the respondent pleaded that a server is entirely different from a personal computer or a laptop computer and the restriction applicable to these computers cannot be applied to a server which is entirely different from a personal computer or laptop computer. They relied on the decision of the Apex Court in the case of CC, Bangalo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licy is applicable only to computers including personal computer and laptop computer and not to server. We note that normally the servers will be the larger machines having very high memory. The processing speed also will be very high and there are various types of servers for various applications. There is no reason to exclude them from the scope of 'Capital Goods'. So, they are not stand-alone computer. In any case, the Commissioner (Appeals) has upheld the confiscation on some other ground and he has also imposed redemption fine and penalty which is the final penalty imposed or only reduced. We do not find any reason as regards the valuation adopted by the Commissioner. Revenue has also no grievance on this point. In these circumstances, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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