Commnr. Of Central Excise, Pondicherry vs M/S. Acer India Ltd

The Supreme Court addressed the applicability of excise duty on operational software loaded onto computers under the Central Excise Act, 1944, specifically referencing Section 4 and Section 11A(1). The Court held that operational software is integral to the functioning of a computer and thus should be included in the assessable value for excise duty purposes. The judgment of the Customs, Excise and Service Tax Appellate Tribunal was set aside, affirming that excise duty is payable on the total value of the computer including the operational software.