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TMI Blog2018 (8) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... y/MRI equipment and its software. A Bill of Entry No. 452986 dated 08.06.2007 was filed at ACC, Bangalore classifying the impugned goods under the heading 9022 14 90 seeking exemption under Sl. No. 410 of Notification No. 21/2007 and Sl. No. 59(ii) of Notification No. 6/2006 in respect of basic Customs duty and additional duty respectively. The software was classified under 85238020 as Information Technology Software chargeable to nil rate of duty. On the basis of assessment order they deposited a fine of Rs. 1,65,000/- (Rupees One Lakh Sixty Five Thousand only) and penalty of Rs. 16,000/- (Rupees Sixteen Thousand only) in addition to payment of duty. Aggrieved by the assessment order, the appellants have gone in appeal before the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he adequate details of the machineries and the software and have submitted that as the unit is very urgently require at the customer centre the matter may be expedited and if the assessing officer was in disagreement with any of the points submitted therein they will be obliged if the consignment could be released by accepting the duty under protest and would wait for a speaking order. Vide letter dated June 12, 2007 they have intimated that they were ready to classify the software along with the equipment under CTH 90221490. Vide letter dated June 16, 2007 they have requested for provisional assessment if any and the matter may be expedited and vide letter dated 18.06.2007 they have submitted that they have understood that they have done a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any computer and is not necessarily to be used only with the scanning machine imported. They submitted that the phosphor reader however, works independently. They have offered to demonstrate during personal hearing that the software can be loaded on any ADM but Commissioner (Appeals) had not given any opportunity. The software interacts with all iCRO products. 3.2. Going by the Chapter Notes 8523 for the purposes of heading 8523, "Information Technology Software" means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to the user, by means of an automatic data processing machine." The DICOM softwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is tailor-made to suit the working of a particular machine is justified to be classified along with machines. It is a point to note that the classification offered by the Department attracted a lower rate of duty and even then they have challenged the classification in view of the merits of the case. The importer has specified in their letter dated 08.06.2007 that the QPC X Scan 32 CR scan and review software is used for obtaining X-ray images captured by the Phosphor reader and combine and compare images obtained from other medical equipments installed/networked in the center. The software has several capabilities for diagnosing medical images and interfacing with other radiology equipment. The Commissioner (Appeals) has given a categor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right to get a speaking order or to represent or appeal. On going through the series of letters in a short span it appears that the appellant's contentions are justified as there are no other justifiable reasons which make the appellants change their stand overnight on the issue of classification. Going by the catalogue it is seen that the QPC X Scan 32 is a DICOM 3.0 compliant software and includes DICOM worklist query, advanced image processing, measurements, report generation, ortho templating, stitching and advanced DICOM print. The manual specifically stated that the advanced image processing, measurements, report generation, ortho templating includes functioning on a PC anywhere and allows HIPPA compliant remote operation of software ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n expressed by two learned Commissioner (Appeals) in classifying the product under 8523 8020. Therefore, we conclude that the software imported by the appellants is a standalone independent software as given in the form of CD and can be loaded on any ADM. Under these circumstances it is rightly classifiable under CTH 8523 8020. Coming to the other issues of changing the classification, imposition of redemption fine and penalty without observing to the principles of natural justice and without issuing a speaking order is bad in law as per the case-law cited by the appellant. Therefore, we allow the appeal of the appellant M/s. Chayagraphics (India) Pvt. Ltd. C/315/2008 and reject the appeals of the Department C/246/2009 and C/1852/2010. ( O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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