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Issues: Whether the value of software sold with a computer, and incidental installation or training charges, could be included in the assessable value of the computer for levy of excise duty.
Analysis: The relevant enquiry was whether the computer and the software were the same article in commercial understanding, or whether they were distinct goods. The tariff provisions treated computers under Heading 84.71 and recorded media such as discs, floppies and similar media under Heading 85.24, while the exemption notification separately recognised computer software under Heading 85.24. On the facts, software sold with the computer remained a separate article and did not merge into the identity of the computer merely because the computer may not function effectively without it. The same principle applied to installation and training charges, which were not part of the computer itself.
Conclusion: The value of software sold along with the computer, as well as the installation and training charges, was not includible in the assessable value of the computer.
Final Conclusion: The excise duty assessment had to be confined to the computer alone, excluding separately identifiable software and allied charges.
Ratio Decidendi: Goods that are commercially distinct from the excisable article cannot be added to its assessable value merely because they are supplied together or are necessary for its effective use.
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