Customs, Excise and Gold Tribunal - Delhi
Norsk Data (India) Ltd. vs Collector Of Customs on 18 March, 1991
Equivalent citations: 1991(33)ECC308, 1992(57)ELT666(TRI-DEL)
ORDER
G. Sankaran, President
1. Being aggrieved with the Order S8/618/ 90-ACC, dated 7-12-1990 passed by the Additional Collector of Customs, Air Cargo Complex, Madras, M/s. Norsk Data (India) Ltd. have filed this appeal before the Tribunal.
2. The issue arising for determination in the present appeal is whether "Software in Source Code in the form of running Computer Sheets" imported by the appellants is eligible for exemption from auxiliary duty of customs in terms of Customs Notification No. 139/90 dated 20-3-1990. The Additional Collector of Customs, Madras, by the impugned order, has held that it is not.
3. Serial No. 23 of the abovementioned notification reads thus :-
"Paper money, printed books (including covers for printed books), periodical (including newspapers), maps, charts, plans, drawings and designs, proofs, music manuscripts and illustrations specially made for binding in books."
The Addl. Collector has noted in his order that the Software is "only in sheets without any serial number and not in the form of a printed book/sheets which could be considered to comprise wholly or part of a complete work designed for binding". He has, therefore, held that the goods cannot be considered as books eligible for the benefit of the notification. However, he has ordered that the goods be assessed free of basic duty of customs leviable under the First Schedule to the Customs Tariff Act, 1975 and additional duty of customs leviable under Section 3 of the said Act, in terms of Customs Notification 280/84 dated 19-11-1984. From the relative Bill of Entry, it is seen that the goods have been classified under sub-heading 4901.99 of the Customs Tariff Schedule which reads thus :-
___________________________________________________________________________ Heading Sub- Description of article Rate of duty No. Heading Standard Preferential No. Areas ___________________________________________________________________________ (1) (2) (3) (4) (5) ___________________________________________________________________________ 49.01 Printed books, brochures leaflets and similar printed matter, whether or not in single sheets 4901.10 - In single sheets, whether Free . .
or not folded
- Other:
4901.91 - Dictionaries and en- Free . .
cyclopaedias, and serial in
stalments thereof
4901.99 -Other: Free . .
and under sub-heading 4901.00 of the First Schedule to the Central Excise Tariff Act, 1985, which reads thus :
__________________________________________________________________________ (1) (2) (3) (4) (5) __________________________________________________________________________ 49.01 Printed books, newspapers, pictures and other products of the printing industry :
manuscripts, typescripts and plans 4901.10 - Transfers (decal-
comanias) 4901.20 - Maps and hydrographic or similar charts of all kinds in-
cluding atlases, wall maps, topographical plans and globes, printed 4901.90 - Other.
Auxiliary duly of customs, however, was directed to be charged at 45% ad valorem denying the benefit of Notification No. 139/90.
4. We have heard Shri R. Sashidharan, Advocate, for the appellants and Shri M. Jayaraman, SDR, for the respondent-Collector.
5. The contention of the Learned Counsel, is that the subject goods are printed books. In this context, he draws our attention to statutory Note 4(c) to Chapter 49 of the Customs Tariff Schedule. This note reads :-
"4. Heading No. 49.01 also covers :
(a) ...
(b) ...
(c) Printed parts of books or booklets, in the form of assembled or separate sheets or signatures, constituting the whole or a part of a complete work and designed for binding.
The Additional Collector has held two circumstances as militating against classification of the subject goods under Heading 49.01. First, he has held that there is no page numbering. The Counsel's submission is that it is not necessary because it is in the form of running computer sheets and not loose sheets. These running sheets could be bound without any further reorganisation of papers. The second circumstance held against the classification of the goods as printed books is that they are not designed for binding. The Counsel's submission is that the continuous computer sheets are designed for binding and that they would be bound but they have not been imported in bound condition because of cost consideration. On the other hand, the submission of the learned D.R. is that unless the sheets are bound they do not constitute a book though it may be printed matter. He also draws our attention to Serial No. 23 of the Notification 139/90 which talks of "illustrations specially made for binding in books". From this it is apparent that books must be imported in a bound condition if they are to get the benefit of the notification. In a brief rejoinder, the learned Advocate submits that the Chapter Note must override the notification and for this purpose reliance was placed by him on Section 20 of the General Clauses Act.
6. We have considered the rival contentions and perused the record. It is clear that the goods fit into Chapter Note 4(c) to Chapter 49 which covers "printed parts of books" in the form of assembled or separate sheets constituting the whole or a part of a complete work and designed for binding. If this be so and the running computer sheets can be considered as constituting a printed book for the purpose of Heading 49.01, we fail to see why it cannot be considered a printed book for the purpose of Serial No. 23 of the Notification 139/90. The expression "illustrations specially made for binding in books" occurring in the notification stands by itself and is not relatable to 'printed books' figuring therein. The term 'printed books' has not been defined in the notification and the meaning of the term has, therefore, to be derived with regard to any other aids in the Tariff Schedule and we have the aid of statutory Note 4(c) to Chapter 49. As rightly pointed out by the learned Counsel for the appellants, the definitions of words and phrase appearing in an enactment must be applied to the same words and phrase appearing in rules, regulations, notifications etc. issued under the enactment unless a contrary intention is apparent. In the present instance, we do not see that the notification in question has anything to suggest that the term 'printed books' is to be understood differently from its meaning for the purpose of the entry in the Schedule. This view is reinforced by Section 20 of the General Clauses Act which provides that where, by any Central Act or regulation, a power to issue any notification, order, etc. is conferred, then, expressions used in the notification, order, etc., if it is made after the commencement of the General Clauses Act, shall, unless there is anything repugnant in the subject or context, have the same respective meanings as in the Act or Regulation conferring the power.
7. In the light of the foregoing discussion, we set aside the impugned order and allow consequential benefit to the appellants.