COMMNR. OF CENTRAL EXCISE, PONDICHERRY vs M/S. ACER INDIA LTD.

The Supreme Court upheld the decision of the Customs, Excise and Service Tax Appellate Tribunal, which ruled that no central excise duty is payable on operational software loaded onto computers, as per Section 4 of the Central Excise Act, 1944. The Court emphasized that the value of operational software should not be included in the assessable value of the computer, distinguishing it from ancillary software that may be sold separately. The Court's holding confirmed the Tribunal's judgment, thereby rejecting the Revenue's appeal.