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And therefore classified the 'Voice Mail Card' under 8524 and concluded that order of denial of benefit under Notification 59/95 was applicable to computer software & herein it was legal and proper. The computer software imports in the present case were required to pay the actual duty under 8524 at the time of import with interest.

4. We have heard both sides and considered the submissions and find:

(a) It is submitted by the appellants that the said software contains instructions to be used to control the operation of PC based on voice mail card which is a hardware inserted into the computer. When an incoming call from EPABX is transferred to an extension line and when the .extension is unanswered then the call is redirected to the computer. The voice mail card then operates to convert the redirected call to digital data, by the software therein via hard disk of the computer. When such call data is required to be retrieved subsequently, an extension from the EPABX activates the software, which then converts the digital data stored in the analog form and transmit the same through the voice mail card to the EPABX. The software processes the data entering into a computer and convert it from analog to digital and vice-versa. Since it is used inside the computer in Tandem itself computer software under Heading 8524.90 of the Customs Tariff Act and entitled to the benefit of Notification No. 11/97, dated 1-3-97. The lower authorities' conclusion about the exclusion clause of Notification No. 11/97 introduced by Notification 3/98 with effect from 11-2-98, which by an explanation which reads as "computer software" means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine in readable form and capable of being manipulated providing interactive to a user, by means of an automatic data processing machine falling under Heading No. 84.71, but does not include software required for operation of any machine performing a specific function other than data processing and incorporation or working in conjunction with an automatic data processing machine" will not be appropriate. The software under import being used in and by the automatic data processing machine, would be eligible to the benefit of Notification 11/97 as amended and not excluded by the above explanation. The findings of the lower authorities that the appellants had imported a software for Telecom and findings and that voice mail card and the application software performed a specific function, not involving data processing and therefore not covered to be classified as computer software was incorrect. Since the software in this case converts sound data from analog to digital and vice-versa it would be covered.