DIGITAL EQUIPMENT (INDIA) Vs. COLLECTOR OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) Appellant No 1 is a company (here in after referred to as DEIL), engaged in manufacture, distribution of Hardware and import Software (media and documentation) catering to the Information Technology (here in after referred to IT) needs in India. It is joint venture, between Digital Equipment Holding b.v. The Netherlands (here in after referred to as DEH) which is subsidiary of Digital Equipment Corporation (hereinafter referred to "DEC") and Hinditran Group of Companies. Appellant No 2 were then the Managing Director of 'DEIL'.

(2.) (a) 'DEIL' imported software media and documents through Regular Customs Channels. It also imported the Software Media and Documentation through Regular Custom Channels. It also imported the Software licenses, stores on TK -50 cartridges cleared the same by declaring them on the Bill of Entry filed, as blank unrecorded magnetic tape cartridge, falling under Chapter heading 8523 at a nominal value of Us 32.40, cleared the same, on duties as applicable assessed. For subsequent period, they obtained these software licenses data from; 'DEC' through ELECTRONIC MAIL NETWORK, directly at their factory.

(3.) We have heard learned Advocate for the Appellants and the SDR for the Department, the SDR has submitted a written letter dt. 08.2.2001 from the Dy. Commissioner of Customs to the SDR to defend these a case of "valuation" as spelt out in the Show Cause Notice as well as the Order -in -Original. After considering the matter we find -