- (1.) Appeal admitted.
(2.) The short question involved in this appeal is whether customs duty on imported computer software loaded on a 'hard disk drive' is to be levied on the basis of 'hard disk' simpliciter or computer software.' Goods imported by the appellant were examined on 9th August, 1995 and were found to be seven pieces of hard disk drive loaded with software. As per the department, custom duty on hard disk drive is leviable under Chapter Heading 84.71 at the rate of 25% and on a computer software it is at the rate of 10% as per the tariff Heading 85.24 read with notification No. 59/95 dated 16-3-1995. It is admitted fact that total value of the consignment was Rs. 67,75,119/- for seven hard disk drives having software loaded thereon. Value of the hard disk simpliciter would be roughly at the most Rs. 60000/-. The relevant headings of the Chapter are as under:- JUDGEMENT_300_SCALE1_2000_1.html
(3.) The Tribunal arrived at the conclusion that as the software was loaded on a hard disk, it would remain to be a hard disk drive on which software was loaded and, therefore, along with Chapter Note 5(A) and (B) of Chapter 84, it would be hard disk drive loaded with software and would be taxable under the Heading 84.71 and not 85.24. The Tribunal considered the decision of this Court in PSI Data Systems Ltd. v. Collector of Central Excise, 1997 (89) ELT 3 : (1997 AIR SCW 606 : AIR 1997 SC 785) and observed that it would not be applicable to the facts of the present case.;