SPRINT R.P.G. INDIA LTD. versus COMMISSIONER OF CUSTOMS-I, DELHI

SPRINT R.P.G. INDIA LTD. versus COMMISSIONER OF CUSTOMS-I, DELHI

Imported computer software loaded on a hard disk drive is classifiable under Heading 85.24 as computer software and not as hard disk drive under Heading 84.71, as the essential character is software, supported by the value differentiation and statutory provisions. Thus, customs duty is assessable at 10% and not 25%.

Parties
Appellant: Sprint R.P.G. India Ltd.; Respondent: Commissioner of Customs-I, Delhi
Jurisdiction
India
Judgment Date
20 January 2000
Procedural Posture
Civil Appeal / Final Appellate Decision
Outcome
appeal allowed
Legal Topics
Customs Tariff Classification, Imported Goods Assessment, Computer Software Definition
Customs Law Customs Tariff Classification Imported Goods Assessment Computer Software Definition

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Parties

Sprint R.P.G. India Ltd.

Appellant

Commissioner of Customs-I, Delhi

Respondent

Procedural Posture

Civil Appeal / Final Appellate Decision

Legal Issues

  1. 1 Whether custom duty on imported computer software loaded on a hard disk drive is to be levied on the basis of 'hard disk' simplicitor or 'computer software'

Ratio Decidendi

Imported computer software loaded on a hard disk drive is classifiable under Heading 85.24 as computer software and not as hard disk drive under Heading 84.71, as the essential character is software, supported by the value differentiation and statutory provisions. Thus, customs duty is assessable at 10% and not 25%.

Court Disposition

appeal allowed

Orders

  • Order dated 25th March, 1996 of Commissioner of Customs and order dated 14th May, 1999 of Tribunal quashed and set aside.
  • It is held that computer software imported on a hard disk drive is assessable at 10% under Heading 85.24 with exemption as per Notification No. 59/95-Cus.