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2017 (5) TMI 445 - AT - CustomsClassification - import of hardware with embedded software - Computer System with model VTP 560 SAMS workstation - "IT software CA" and SAM software with 2000 pieces of "Smart Cards" - Held that: - it is evident that software was very much part of the hardware imported. Adjudicating authority has noted that the software has merged and formed part of the essential constituent of software for which reason, the identity of the software is lost and the hardware and software values will be inseparable. Thus, it appears to reason that the software has been embedded along with hardware. Appellants have not been able to prove otherwise, either in the original adjudication or even before this forum. Reliance was placed in the case of Bhagyanagar Metals Ltd. [2016 (2) TMI 614 - CESTAT HYDERABAD], wherein Tribunal relied upon Apex Courts judgment in CC Chennai Vs Hewlett Packard India Sales (P) Ltd. [2007 (8) TMI 347 - SUPREME COURT OF INDIA] which held that preloaded operating systems software in the hard drive of a laptop forms an integral part of the laptop and therefore cost of such preloaded software forms part of the value of laptop. Accordingly, only laptop is imported with inbuilt preloaded operating system recorded on the hard disk. Such items forming integral part of the laptop and has to be classified as laptop and not as computer software separately - it was also held that in case of fixed wireless telephones, FWT, consisting of hardware and software, without software, activation of the telephones was not possible and hence there could not be two separate / distinguished goods for classification and assessment,since the software could not be considered as optional - appeal dismissed - decided against appellant.
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