- CESTAT ruled that preloaded software must be included in the customs valuation of imported navigation devices.
- Lakshmi Access Communications Systems Pvt. Ltd. imported GPS devices and software licences separately, leading to an investigation for undervaluation.
- The Directorate of Revenue Intelligence issued a notice demanding differential duty and penalties.
- The appellant argued that software licences were exempt from customs duty and should not be included in hardware valuation.
- The revenue counsel argued that the software was preloaded and integral to the hardware, justifying its inclusion in valuation.
- The tribunal upheld the inclusion of software in the valuation, confirming duty demand and confiscation.
- The penalty on directors was reduced from Rs. 6 lakh to Rs. 1 lakh, but the company’s appeal was dismissed.
Source: taxscan.in
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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