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TMI Blog2008 (1) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ) [Order per : T.K. Jayaraman, Member (T)].- This appeal has been filed against the Order-in-Appeal No. 182/2006/Cus (B) dated 29.12.2006 passed by the Commissioner of Customs (Appeals) Bangalore. 2. The appellants filed two bills of entry dated 09.03.2006 and 21.03.2006 for clearing of Software System ID, licence, instruction guide and manuals etc. They classified the software under CTH 8524.20 and claimed the benefit of nil rate under Notification C.N 21/02 for the basic customs duty and serial no. 27 of Notification No. 6/06 Central Excise for basic Excise duty. After seeking certain clarification from the appellants, the departmental officers were of the opinion that the software imported is packaged software and therefore the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem is used in various process industries, for example: Power plant, Fertilizer plant, Chemical plant, etc. are actually process industries. There are several parameters which are to be maintained at desirable levels in a process. If a particular parameter changes to a level, other than the desired level, the variation which is also known as error is converted into a signal and used as a feedback to actuate a mechanism which takes remedial action so that the particular parameter is restored to the desirable level. This is basic to all automatic control systems. Due to rapid strides in Information Technology, computers are used in automatic control systems. The foreign supplier manufactures DCS comprising of both hardware and software. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to the control system to collectively perform process control of the plant (e) The software uses Yokogawa proprietary communication protocol to function and therefore cannot be sued outside the Yokogawa domain. (f) The Yokogawa software package cannot be individually bought across the shelf and used. The software configuration varies with customer and application to application. These software are configured on job basis to meet the end user's requirements. This application software is developed, based on an understanding of process to command the control system. (g) The final designed output of the Yokogawa software/hardware combination can only be used for the client it was designed for every installation is customized and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7. The Commissioner (Appeals) has discussed the issue in detail and come to the conclusion that the order of the lower authority is legal and proper. Therefore, he has upheld the view that the imported software is packaged software. Serial No. 27 of Notification 6/06 is reproduced below: "Any customized software (that is to say, any customs designed software, developed for a specific user or client) other than packaged software or canned software. Explanation: For the purposes of this entry, "packaged software or canned software" means software developed to meet the needs of variety of users, and which is intended for sale or capable of being sold, off the shelf. 8. The above entry explains both customized software and package ..... X X X X Extracts X X X X X X X X Extracts X X X X
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