9911796707
TMI Blog2001 (8) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... arn and Polyester Staple Fibre : whereas the assessee contended that the goods so imported are covered under Sl. No. 10 of the Notification No. 25/95-Cus., dated 16-3-1995 having 'Nil' rate of duty. The Revenue contended that the goods fall under Sl. No. 15 of the notification attracting 10 per cent ad valorem. Before proceeding further with the matter the variable rate of duty chargeable as appears from the table in the Exemption Notification and in particular Sl. Nos. 10 and 15 thereof are noted hereinbelow : TABLE S. No. Chapter or Heading No. or sub-heading No. Description of goods Rate Conditions (1) (2) (3) (4) (5) ……………………………………………. 10. 49 Printed books (including covers for printed books) and printed manuals including those in loose-leaf form with binder. …………… Nil - 15. 49.06 and 49.11 Plans, drawings and designs 10 % ad valorem - ……………………………………………. 3.The factual score further depicts that by reason of the classification of the goods in question by the revenue authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, as of machinery; a map ….. a scheme; a project; also a method of action, procedure, or arrangement. 7.The word 'drawing' in common acceptation however, mean and include 'art of representing by line, delineation without colour or with single colour' and Corpus Juris Secundum defines it as meaning a representation on a plane surface, by means of lines and shades. 8.The third expression viz., 'design' in popular parlance is used as a synonym with plan and includes a sketch. Some times it has also been held to be synonymous with 'figure'. The expression 'design' has within its ambit many facets including a criminal design which connotes an evil desire, obviously exemption notification cannot possibly mean and imply a meaning which can be attributed to be an evil one. 9.The three words 'plan, drawing and design' however, convey more or less a common attribution and identical meaning, though however, in a larger spectrum, three words used in the exemption notification have three individual attribute by reason wherefor, legislature it fit to specifically refer to each of these words. 10.Turning attention on to Serial No. 10, be it noted that in Chapter 49 'printed books' and 'prin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Dr. S.C. Rustagi and Shri Alok Parasrampuria were recorded under Section 108 of Customs Act, 1962 wherein all these inter alia admitted that the technical documents, as per the said agreement had been brought into India and no duty was paid. They also admitted that the importation of technical documents in the form of drawings and designs, attracts duty under Chapter Heading 4906/4911 at the relevant period of time. I further observe that M/s. Parasrampuria Synthetic Ltd. has already deposited 30 lakhs of rupees as duty liability in anticipation of adjudication by the Department. Since the clandestine import of technical documents and subsequent non-payment of duty applicable on such goods had been admitted by M/s. Parasrampuria Synthetic Ltd., through the statements of Shri Om Prakash Parasrampuria, Shri Alok Parasrampuria and Dr. S.C. Rustagi, I do not want to go in details on the issue whether the goods under reference attracted any duty at the relevant period of time. There is also no denying the fact that at the relevant period of time, the importation of technical documents in the form of design and drawing were chargeable to duty under Tariff Heading No. 4906/4911." 13.Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... struments; in fact it is with the aid of these complete and up-to-date sets of documents that the assessee was able to commence its manufacturing activity and these documents really formed the basis of the business of manufacturing the instruments in question. True, by themselves these documents did not perform any mechanical operations or processes but that cannot militate against their being a plant since they were in a sense the basic tools of the assessee's trade having a fairly enduring utility, though owing to technological advances they might or would in course of time become obsolete. We are, therefore, clearly of the view that the capital asset acquired by the assessee, namely, the technical know-how in the shape of drawings, designs, charts, plans, processing data and other literature falls within the definition of 'plant' and therefore a depreciable asset." (Emphasis supplied). 15.While there is some factual divergence as noticed above but the factum of the drawings etc. not forming part of a book within the exemption notification stands accepted in Scientific Engineers (supra) as would be evident from the emphasized portion in paragraph 13 noticed above. In this view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r plant to manufacture Polyester, Polyester Filament Yarn and Polyester Staple Fibre. Even without adverting to the general trade parlance of the word 'book' and its known features, a plain look at the book itself denotes it to be a Installation and Planning Manual. The documents though loosely kept in a binder is known as Zimmer Documentation as regards the Fisher-Rosemount Systems. It is a technology transfer agreement which stands documented in a folder. The heading itself record "Installing CHIP Products and Application Software". The heading itself thus, indicative of not being a work of art by an author - it is a record of scientific progress achieved and this particular achievement is being transferred by way of Transfer of Technology Agreement between the two parties and thus, cannot but be termed to be a "technical know-how in the shape of a drawings, designs, charts, plans and other literature" - these items have been ascribed to be a part of the plant for the purposes of Depreciation Allowance in terms of Sections 32 and 43(3) of the Income-tax Act. Merely by reason of the factum of certain writings on various sheets of papers one cannot ascribe the documentation to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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