Court :
supreme court
Brief :
Citation :
SC exempts laptops from additional 7% duty
New Delhi
November 11, 2007
In a judgement that could cheer the IT Companies as well as the end-users, the Supreme Court has held that the government cannot levy additional seven per cent customs duty on notebook PCs (laptops) as in the case of desktop computers since the two are totally different.
While dismissing a petition filed by Commissioner of Customs, a bench headed by Justice S B Sinha said that the government cannot ask IT Companies to pay seven per cent additional customs duty on notebook PCs, unlike desktops, as the two items were totally different though capable of performing same or similar functions.
"We are of the opinion that a laptop or a notebook PC being an integrated item cannot be a set of a CPU with monitor, mouse and key board," the court said.
A desktop is a combination of items -- CPU, monitor, mouse and keyboard -- which when put together are capable of making a computer, the court observed, adding a notebook computer, on the other hand, comes in an integrated and inseparable form and thus cannot be said to be a set of all these parts.
Upholding the Customs, Excise and Services Tax Appellate Tribunal's judgement, the court said the interpretation by the tribunal was in consonance with the Computers (Additional Duty) Rules, 2004.
[Source: The Financial Express]
CAclubindia
