ORACLE INDIA PRIVATE LIMITED Vs. THE COMMISSIONER OF CUSTOMS (I AN G) AND THE COMMISSIONER OF CUSTOMER OF VALUATION, DIRECTORATE GENERAL OF VALUATION

JUDGEMENT

(1.) THE applicant is M/s Oracle India Private Limited. These applications are filed by the applicant invoking Section 28H of the Customs Act, 1962 seeking a ruling on two separate but interrelated questions arising out of a new line of business it proposes to undertake. The maintainability of the applications being contested by the Customs Department, these applications were heard on the maintainability of these applications at the threshold in the context of Sec 28 -I(2) of the Act. The present Order is on that question.

(2.) ACCORDING to the applicant, it is a Private Limited Company registered in India under the Companies Act, 1956. It is a wholly owned subsidiary of Oracle Systems Corporation, USA. The applicant is already in business in India. Its current business falls in two categories, software and services. In the software business it provides distribution/sub -licensing of software along with related services. It has entered into a Software Duplication and Distribution License Agreement dated 1.6.2003 with Oracle Systems Corporation formed in USA. In terms of that agreement, the applicant has been granted a non -exclusive non -assignable right and authority to Duplicate on appropriate carrier media Software products as per standard Oracle product list updated from time to time and to sub -license the same in India. In the service business, the applicant provides captive support services to Oracle Group of Companies. These services include captive software development services to Oracle Group Companies, software consultancy services and back office IT support to Oracle Group Companies. It also provides consultancy and educational services.

(3.) ORACLE Systems Corporation has now started a hardware business. The same can be broadly classified as Oracle hardware systems product and Oracle hardware systems support. Oracle has a wide range of Oracle Hardware products. As a routine distributor the applicant is also proposing to sell Oracle Hardware Products to customers in India. The applicant also proposes to enter into a new business activity of providing support services to customers of Oracle Hardware products in India including the providing of spare parts and assuming replacement obligations for the products to customers in India. Under the Support Services, the applicant expects to provide customers in India who purchase hardware systems products, services such as product repairs, maintenance services and Technical support services as well as updates to hardware related software which will be under end -user licenses for use with such Hardware System Products.