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.