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2009 (10) TMI 261 - AT - CustomsExemption from ACD- Notification No. 6/2006-C.E., dated 1-3-2006 - The appellant has imported Performance Analysis and Diagnostic Optimization System (PADO) software package and Boiler Performance Optimization System software package (BPOS) vide four Bills of Entry for use in coal based power plants run by BHEL. The appellant claimed exemption from Additional Customs Duty and Education Cess (totalling Rs.1,04,58,534/-) in lieu of Central Excise duty, based on Notification No. 6/2006-C.E., dated 1-3-2006 classifying the same as customized software. The Department’s view that the same is not custom designed software and hence ineligible for the exemption under the said notification was confirmed by the adjudicating authority and upheld by the Commissioner (Appeals). Held that- the software has to be developed from the basic building blocks, whereby a new software product should emerge as per the specific requirement of the client so as to qualify itself as a custom designed software. Software, just modified from already existing established software packages/modules, will not qualify itself as a custom designed software. Further held that the imported PADO and BPOS software packages are only modified packaged software and are not eligible to the exemption under the Central Excise Notification No. 6/2006 dated 1-3-2006 as the benefit of the said Notification is admissible only to the Custom designed Software.We uphold the impugned Order passed by the Commissioner of Customs (Appeals) and reject the appeal.
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