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2009 (7) TMI 141 - CESTAT, NEW DELHI100% EOU – software EOU - Import by STP unit - based company engaged in manufacture of telecom equipment. - Notification No. 140/91-Cus., dated 22-10-91 – held that - it is absolutely clear that the purpose of import of this equipment by M/s. Converge was to install the same in the MTNL’s premises for trial and thereafter possible sale. It has been pleaded by the appellants that the maintenance of the equipment by M/s. Converge during the period of trial at the MTNL’s premises involved software testing and the software development includes software testing. - This plea is absolutely incorrect - since the basic conditions of duty free import under Notification No. 140/91-Cus., that is used of the imported equipment for software development data entry, data processing etc. for export has not been fulfilled, M/s. Converge are not eligible for duty exemption - Since the imported equipment was neither installed in the premises of M/s. Converge in the software technology park nor used for software development for export, the condition Nos. 4 and 7 of para 1 of the notification have also been violated. – demand, interest, redemption find and penalty confirmed.
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