TMI Blog2018 (8) TMI 1529X X X X Extracts X X X X X X X X Extracts X X X X ..... CTA - appeal allowed - decided in favor of appellant. - C/203/2012 - FINAL ORDER No. 41818/2018 - Dated:- 7-6-2018 - Shri Madhu Mohan Damodhar, Member (Technical) And Shri P. Dinesha, Member (Judicial) Shri Raghavan Ramabhadran, Advocate, for the Appellant Shri A. Cletus, ADC (AR) for the Respondent. ORDER Per Madhu Mohan Damodhar The facts of the case are that M/s. Ingram Micro India Ltd., the appellant herein had imported Licences for Software on paper media under various Bills of Entry during the period June 2008 to January 2009. The appellants had classified the goods under the Customs Tariff Heading (CTH) No. 4907 0030, which covers Documents of title conveying the right to use Information Technology Sof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per se gives the right to use the software and is a document of title conveying the right to use the software. iii) The licence in software cannot be classified and valued as one product. They are required to be classified separately as per the scheme of classification under the Customs Tariff. iv) The Ld. Advocate clarifies that the order of the Settlement Commission referred to the interim order dated 10.06.2014 of this Bench concerns the application made by M/s. Microsoft wherein which involved import of both software along with paper licence. In the present case, only the paper licences have been imported by the appellant. v) On the basis of representations made by the Industry Association, Board had issued a Circular No. 15/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.354/189 /2009-TRU Sub:- Applicability of indirect taxes on packaged software - regarding Representations have been received from some industry association on behalf of software dealers about difficulties being expressed in the assessment to customs duty of documents of title for IT software or documents that enable the transfer of the right to use such software at the time of its sale. It has been reported that there are frequent imports of such documents without any accompanying software. Such packages do not contain software but consist of paper licenses or PUK (Personal Unlocking Key, usually in the form of a scratch card of paper board or plastic) that are used to convey the right to use such IT software. The software in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nformation Technology software. The supplementary note to Chapter 85 defines Information Technology Software to mean any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine. It is evident that document conveying the right to use software by themselves do not satisfy this definition and therefore do not qualify for classification under this tariff item because they do not contain any representation of instructions, data, sound or image recorded in a machine readable form, which is capable of being manipulated or providing interactivity to a use ..... X X X X Extracts X X X X X X X X Extracts X X X X
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