Customs, Excise and Gold Tribunal - Bangalore
Centre For Development Of Advanced ... vs Cce Bangalore on 1 March, 2001
ORDER
Shri G.A. Brahma Deva
1. The short point to be considered in this case is whether value of the software is tobe included in determining the assessable value of the Computer.
2. It was brought to our notice that the issue involved has already been considered by the Apex Court in the case of PSI Data Systems Ltd., Vs Collector of Central Excise reported in 1997 (89) ELT. 3 (S.C). In this context the learned Counsel drew our attention to para 13 of the said decision which reads as follows:
"Secondly, that a computer and its software are distinct and separate is clear, both as a matter of commercial parlance as also upon the material on record. A computer may not be capable of effective functioning unless loaded with software such as discs, floppies and C.D roms, but that is not to say that these are part of the computer or to held that of they are sold along with the computer, their value must form part of the assessable value of the computer for the purposes of excise duty. To give an example, a cassettee recorder will not function unless a cassette is inserted in it but the two are well known and recognised to be different and distinct articles. The value of the cassettee, if sold along with the cassettee recorder cannot be included in the assessable value of the cassettee recorder. Just so, the value of software, if sold along with the computer, cannot be included in the assessable value of the computer for the purposes of excise duty"
3. Heard Smt Radha Arun appearing for the revenue. Considering the facts and circumstance and taking into consideration that the issue involved herein has already been considered and concluded by the Apex Court, following the same we accept the contention of the party. Accordingly, these five appeals are allowed with consequential relief if any.