SC scraps duty on loaded software

DQW Bureau
07 Oct 2004
New Update


Indian PC manufacturers have another good news to cheer for. Supreme Court

has ruled that no excise duty is payable on software loaded on com-puters. The

Excise Depart-ment had argued that opera-tional software was part of the PC and

therefore duty should be paid on the total value of the computer.

The apex court also rejected suggestions from the Depart-ment that PCs with

license software should not be com-pared with a disc, floppy or CD-ROM available

in the market separately.

The three-judge bench hea-ded by Justice Santosh Hegde, which upheld the

appeal by Acer India and other PC makers, explained that computer and

operational software are dif-ferent marketable commo-dities. The excise duty on

com-puters is 16 percent whereas that on the software is nil.

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