Commissioner Of Customs, Chennai vs M/S Hewlett Packard India Sales (P) Ltd

The Supreme Court upheld the CESTAT's decision that Software-loaded Hard Discs are classifiable under Heading 85.24 of the Customs Tariff Act, 1985, and eligible for duty exemption under Notification No.21/2002-Cus. The Court emphasized that the classification of goods should reflect their actual nature and use, and that the respondent's separate declaration of software and hardware values was valid. The appeal by the Department was dismissed, affirming the Tribunal's ruling in favor of the respondent.