9911796707
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Issues:
The judgment involves the condonation of delay in filing supplementary appeals and the determination of assessable value concerning extra disc drives and freight/insurance costs in the context of a supply contract for computer systems. Delay Condonation: The delay in filing the supplementary appeals was condoned as per practice and procedure. Assessable Value - Extra Disc Drives: The lower appellate authority held that the value of extra disc drives supplied with the computer system should be considered for arriving at the assessable value. However, the Tribunal ruled that the disc drive supplied as a spare, not forming part of the computer, should be excluded from the assessable value based on the distinction between computer and software as per the Supreme Court's decision in PSI Data Systems Ltd. Assessable Value - Freight and Insurance Costs: Regarding the inclusion of freight and insurance costs in the assessable value, the Tribunal noted that abatement is not automatically available unless these elements were included in the sales price as per the contract terms. The matter was remanded to the original authority for reevaluation in light of relevant Supreme Court judgments. Arguments and Rulings: The Revenue contended that the extra disc drive should be included in the assessable value as part of the computer supply contract. However, the Tribunal disagreed, citing the distinction between computer and software established by the Supreme Court. The Tribunal also emphasized the need to examine contract terms for inclusion of freight and insurance costs in the assessable value, based on previous legal precedents. Conclusion: The Tribunal upheld the exclusion of the cost of the disc drive from the assessable value and partially allowed the Revenue's appeal regarding the reevaluation of freight and insurance costs inclusion based on contract terms. The judgment clarified the criteria for determining assessable value in the context of computer system supply contracts.
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