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1998 (7) TMI 93 - SC - Central ExciseWhether the computers manufactured and cleared by the DSI and Orbit are liable to be treated as the computers manufactured and cleared by the appellant and, therefore, liable for excise duty at the hands of the Appellant? Whether the value of peripheral devices and/or computer systems sold by Adprint along with computers are includible in the assessable value of the Computer? Whether the amount or value of the service charges recovered by the appellant under service contracts can be included in the assesable value of the computer? Held that:- In the case on hand, it cannot be disputed that the computers manufactured and supplied by Orbit, DSI or the appellant (from May, 1982 onwards) were complete computers, which had a Central Processing Unit, with "etched-in" or "burnt-in software, a Key Board (input device) the monitor (output device) and Disc drives. The computers, as above, were cleared after complying with all requirements under the Excise Law and proper duty as computed was paid. The peripheral devices and other systems software were merely additional devices meant to increase the memory or storage capacity of the computers and other facilities. It is also not disputed by the Revenue that the peripheral devices were imported by the appellant and the appellant had paid countervailing duty on such imported peripherals. In the light of these facts, we have no difficulty to apply the ratio in the judgment of this Court in PSI Data Systems (1996 (12) TMI 47 - SUPREME COURT OF INDIA) and grant relief to the appellant. In favour of assessee.
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