Customs, Excise and Gold Tribunal - Delhi
Cce vs Hfcl Satellite Co. Ltd. on 12 March, 2008
ORDER
S.S. Kang, Vice President
1. Heard both sides.
2. Revenue filed this appeal against the impugned order whereby the Commissioner (Appeals) held that the product in question, manufactured and cleared by the respondents, is computer software classifiable under Sub-heading 8524.20 of the Schedule to the Central Excise Tariff Act, 1985.
3. The case of the Revenue is that the item in question is classifiable under Sub-heading 8524.90 of the Central Excise Tariff Act as other computer software. Contention is also that the product in question is application software used in telecommunication. Contention is that computer software classifiable under Sub-heading 8524.20 of the Tariff is only operational software. As the present software is application software, therefore, it is classifiable under sub-heading 8524.90 of the Central Excise Tariff Act.
4. Contention of the respondents is that Heading 85.24 of the Tariff covers Records, tapes and other recorded media for sound or other similarly recorded phenomena. Sub-headings covers Gramophone records, Computer software, Magnetic tapes, Magnetic discs, and other products. Sub-heading 8524.90 is in respect of other recorded media for sound or other similarly recorded phenomena, Magnetic tapes, Magnetic discs. Contention of the respondents is also that the software in question is used with data processing machine for checking and verifying the operation of telecommunication satellite as the software is used with data processing machine it is classifiable under 8524.20 as computer software.
5. We find that tariff heading 85.24 of the Central Excise Tariff Act is for Records, tapes and other recorded media for sound or other similarly recorded phenomena. For ready reference Tariff heading 85.24 is reproduced below:
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 8524.20
- Computer software
- Magnetic tapes:
8524.31
- Audio tapes in any form 8524.32
- Audio cassettes 8524.33
- Video tapes in any form 8524.34
- Recorded video cassettes, containing tape of width not exceeding 15 millimetres, manufactured from an unrecorded video cassette 8524.35
- Video cassettes, other 8524.39
- Others 8524.40
- Magnetic discs 8524.90
- Other Reading of the Tariff heading 8524 reveals that it is in respect of Records, tapes and other recorded media for sound or other similarly recorded phenomena. The tariff heading further includes Magnetic tapes, Magnetic discs. The items classifiable under sub-heading 8524.90 are other Records, tape and other recorded media for sound or other similarly recorded phenomena. It is also not in dispute that the software in question is used with the data processing machine to check and verify the operation of telecommunication software. As the software is used with data processing machine and there is no further classification of operational or application software as claimed by revenue, we find no infirmity in the impugned order. Appeal is dismissed.
(Dictated & pronounced in the Open Court.)