1997 (1) TMI 524 - AT - Central Excise

Summary

Issues involved: Whether software sold with computers should be considered part of the computer for the purpose of calculating duty.

Summary:
The appeal addressed the question of whether software sold with computers should be treated as part of the computer for duty calculation. The appellant argued that software should not be included in the value of the computer. Previous Tribunal decisions supported the inclusion of software in the computer's value for duty calculation. However, the appellant sought reconsideration based on Chapter Note 6 under Chapter 85. The matter was referred to a Larger Bench for scrutiny. In the meantime, the Supreme Court overturned previous Tribunal decisions, stating that software is distinct from the computer and should not be considered part of it for duty calculation.

In light of the Supreme Court's ruling, the Tribunal held that the value of software sold with computers should not be added to the assessable value of the computer. Therefore, the orders and demands made against the appellant were set aside, and the appeal was allowed.