( 1 ) THESE writ appeals arise out of an order passed by a learned single Judge of this Court dated 14-7-1994 dismissing Writ petition Nos. 7469 to 7471 of 1994. A few facts relevant for the disposal of these appeal may be stated first.

( 2 ) THE appellant-Company is engaged in the manufacture ofmini and micro computer systems for which purpose it has been importing diskettes and manuals from outside the Country. During the relevant period the appellant made 3 importations at bangalore, Madras and Bombay in respect of which duty has been demanded and penalty imposed to the extent set out below: Order No. and date

Duty demanded

Penalty on Company

Penalty on President Sri Ashok Soota

Order No. 13/92 dt. 10-5-1993

6,30,929

4,00,000

30,000

Order No. 14/91 dt. 10-5-1993

58,58,790

5,00,000

50,000

Order No. 15/92

Duty not

assessed finally

5,00,000

50,000

Total

64,89,719

14,00,000

1,30,000

( 3 ) AGGRIEVED by the demand raised against the appellant, 3 appeals were filed by it before the Customs, Excise and Gold (Control) Appellate Tribunal, South Regional Bench at Madras in which appeals the appellant made applications under Section 35-F of the Central Excises and Salt Act, 1944 seeking waiver of pre-deposit of the duty demanded from it. These applications were considered by the Tribunal and by a common order dated 3-1-1994 it directed the appellant-Company to make pre-deposit of duty and penalty by 31-3-1994 in each case to the extent given below: Order No. and date

Duty to be pre-deposited

Penalty to be pre-deposited

Order No. 13/92 dt. 10-5-1993

Rs. 3,16,000/-

( Rupees Three lakhs sixteen thousand)

Rs. 2,00,000/- (Rupees Two lakhs)

Order No. 14/91 dt. 10-5-1993

Rupees 30,00,000/- (Rupees Thirty lakhs)

Rs. 2,50,000/- (Rupees Two lakhs fifty thousand)

Order No. 15/92 dt. 10-5-1993

-

Rs. 2,50,000/- (Rupees Two lakhs fifty thousand)

( 4 ) RECOVERY of the balance amount from the Company and the entire amount from its President was stayed by the Tribunal subject to the appellant complying with the direction regarding pre-deposit to the above extent. It is therefore apparent that as against a total amount of Rs. 80,19,719/- found payable by the appellant, it was required to deposit only an amount of Rs. 40,16,000/- which is roughly one half of the total demand raised against it.

( 5 ) AGGRIEVED by the aforesaid order of the Tribunal, the appellant filed W. P. Nos. 7469 to 7471 of 1994, which were heard and dismissed by a learned Single Judge of this Court as already indicated earlier.

( 6 ) WE have heard the learned counsel for the appellant at length.

( 7 ) THE common issue which arises in the three appeal spreferred by the appellant before the Tribunal is whether the cost of the manuals imported alongwith the software diskettes should be taken to be included in the cost of the diskettes or the value of the manuals should be taken separately and the two items i. e. , manuals and the diskettes assessed as two items. The appellant appears to have got the value of the two items split, in order to benefit from the lower rate of duty which is attracted to the manuals as printed material in comparison to the diskettes which attract a higher duty. The Collector of Customs has however clubbed the value of the manuals and diskettes and levied a uniform higher rate of duty resulting in an additional demand on account of duty besides penalty under the Act.

( 8 ) A reading of the order passed by the Appellate Tribunal shows that the Tribunal has carefully considered the matter before it and come to the prima facie conclusion that the instruction manuals imported by the appellant along with diskettes are in the nature of a compulsory supply and are essential for marketing of the diskettes used by the buyers. The tribunal further found that the appellant had deliberately got the value of the diskettes split under two heads i. e. , for diskettes and manuals separately and entered into a financial arrangement with the suppliers for the said purpose. The tr

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