2001 (1) TMI 248 - SUPREME COURT

Drawing and Design - information put on the media - import through courier - baggage - Held that: - Any media whether in the form of books or computer disks or cassettes which contain information technology or ideas would necessarily be regarded as goods under the aforesaid provisions of the Customs Act. These items are movable goods and would be covered by Section 2(22)(e) of the Customs Act. - whenever any goods or movables or tangible articles are imported into this country customs duty is payable. For the purpose of attracting levy it would be immaterial as to what are the types of goods imported or what is contained in them or recorded thereon. The contents will be relevant for the purpose of valuation - Any movable articles, irrespective of what they may be or may contain would be goods as defined in Section 2(22) of the Customs Act - The action of the Reserve Bank cannot result in negating the statutory provisions of the Customs Act and the Tariff Act applicable in the instant cases. The belief of the appellants that what was imported were not 'goods', as the Reserve Bank had also regarded the payment was being made for services and not goods, was clearly erroneous and misplaced.

. As per Rules 3 and 4 the transaction value of the imported goods, subject to adjustment under Rule 9, is to be the price actually paid or payable for the goods when sold for export to India. Rule 9(1)(b)(iv) is important for that shows that engineering, development, artwork, design work and plans and sketches would form part of the price of goods for the purpose of determining its value for levy of duty.

The subject-matter of the tax is not the person importing or exporting but the subject-matter of the tax is the goods imported. If such goods are imported as a part of the baggage then by virtue of Heading No. 98.03 rate of duty prescribed therein has to be paid. - The parties took a chance in importing the articles through the courier. Initially they were successful in having the goods cleared by declaring a nominal value in respect thereof. They may not have been able to do this if the technical material and goods had been imported, not as a part of passengers' baggage, but in the ordinary course of import either through post or by filing bill of entry. - the provisions of Chapter 98 were rightly applied on the facts of these cases.