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 :-

and under sub-heading 4901.00 of the First Schedule to the Central Excise Tariff Act, 1985, which reads thus :

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