ORDER
U.L. Bhat, J. (President)
1. The dispute in Appeal No. 5296/93 relates to includibility of the cost of software and two bought out items in the assessable value of computers manufactured and supplied to customers. The dispute in Appeal E 75297/93 relates only to includibility of the cost of software.
2. That the cost of software is not so includible has been held by the Hon’ble Supreme Court in the case of PSI Data Systems Limited, reported in 1997 (89) E.L.T. 3 (S.C.).
3. The two disputed bought out items are Dot Matrix Printers and Numerical Co-Processors. In our opinion, the Numerical Co-Processor must be regarded as an essential part of the computer. But the same cannot be said of Dot Matrix Printers. Every user of a computer may not require a printer. Persons and institutions which use several PCs may have one printer to serve. In these circumstances, the printer is not shown to be an essential part of a computer.
4. The order impugned in Appeal No. 5296/93 is set aside to the extent it includes the value of software and printer in the assessable value of computers. The appeal relates also to penalty of Rs. 5,000/- imposed on the Appellant. Considering the value involved, the penalty is reduced to Rs. 500/-. The appeal is allowed in part.
5. The order impugned in Appeal No. 5297/93 is set aside and the appeal is allowed.