9911796707
TMI Blog2000 (1) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... % as per the Tariff Heading 85.24 read with Notification No. 59/95, dated 16-3-1995. It is admitted fact that total value of the consignment was Rs. 67,75,119/- for seven hard disk drives having software loaded thereon. Value of the hard disk simplicitor would be roughly at the most Rs. 60,000/-. The relevant headings of the Chapter are as under :- "84.71 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included. 8471.70 Storage units. 5% 8471.80 Other units of automatic data processing machines. 20% 8471.90 Other 20% 85.23 Prepared unrecorded media for sound recording or similar recording of other phenomena, other than products of Chapter 37. - Magnetic tapes 85.24 Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for the production of records, but excluding products of Chapter 37. 8524.10 Gramophone records. 40% - Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Stephen J. Dougherty wherein `hard disk' is given meaning as under :- "Hard disk. A data storage device that stores the data on metal disks that have a magnetic coating. Hard disk drives provide faster access and larger storage capacities than diskettes. Sometimes referred to as a fixed disk." 6. He further submits that he has received information from the Deputy Commissioner (Customs), Air Cargo, New Delhi, as per the letter which is produced on record which points out that in nutshell, a hard disk is one of the devices used in the Computer Systems. Its function is to store the data, instructions, sound images etc. including source code and object code. The moot difference between the hard disk and the software is that a hard disk is hardware whereas software is a representation of any type of data and which is stored in the hard disk. Similarly, as per the Internet information received by Customs, "a hard disk" is really a set of stacked "disks", each of which, like phonograph records, has data recorded electromagnetically in concentric circles or "tracks" on the disk. A "head" (something like a phonograph arm but in a relatively fixed position) records (writes) or reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormation stored in the hard disk drive using magnetic recording method. 8. Further the Central Government by its Notification No. 59/95-Cus., dated 16th March 1995 provided exemption to the computer equipments which reads as under :- "In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in column (3) of the Table hereto annexed and falling within Chapter or under heading No. or sub-heading No. of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), specified in the corresponding entry in column 92 of the said Table, when imported into India, from so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule, as is in excess of the amount calculated at the rates specified in the corresponding entry in column (4) of the said Table. Sl. No. Chapter or heading No. or sub- heading No. Description of goods Rate of duty (1) (2) (3) (4) 1. 84.71 All goods other than Hard disk drive and Flopp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin." 11. Testing it from the aforesaid Rules of Interpretation, it would be clear that the disk or a floppy on which computer data is recorded, would be covered by Heading 85.24. Rule 3(a), inter alia, provides that when two or more headings each refer to part only of the materials or composite goods, those headings are to be regarded as equally specific in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
