Commissioner Of Central Excise, ... vs Acer India Ltd.

The Supreme Court held that software essential for the functioning of a computer should be included in the assessable value for excise duty under Section 4 of the Central Excise Act. The Court disagreed with the previous ruling in PSI Data Systems Limited v. Collector of Central Excise, which stated that software is distinct from the computer. The Court emphasized that without the necessary software, a computer cannot function, thus making the software part of the transaction value. The matter was referred to a Larger Bench for further consideration.