Drawing and Design - information put on the media- Whether dutiable or not ?
XYZ Ltd. has imported drawings and designs in paper form through DHL courier and post parcels. However, the Assistant Commissioner of Customs valued these drawings and designs and levied duty on them. XYZ Ltd. Contended that customs duty cannot be levied on drawings and designs as they do not fall in the definition of goods under the Customs Act, 1962.
Ans: Hon’ble Supreme Court observed that though technical advice or information technology are intangible assets but the moment they are put on a media, whether paper or cassettes or diskettes or any other thing, they become movable and are thus, goods. Therefore, the Supreme Court held that drawings, designs, manuals and technical material are goods liable to customs duty.
ASSOCIATED CEMENT COMPANIES LTD. VERSUS CC, SUPREME COURT decided on 25th January 2001 - 2001 (128) E.L.T. 21 (SC) ,  124 STC 59 (SC), 2001 (4) SCC 593, 2001 AIR 862, 2001 (1) SCR 608, 2001 (2) JT 141, 2001 (1) SCALE 436