- CESTAT held that the value of software preloaded in imported networking equipment must be included in the assessable value of hardware for customs duty.
- The tribunal upheld the differential duty demand for the normal period but dropped all penalties against Wipro, citing a bona fide interpretational dispute.
- Wipro had transparently declared separate values for hardware and software in import documents, and there was no concealment of software import.
- The tribunal followed precedent, finding that software integral to the functioning of imported equipment cannot be valued separately.
- The case was remitted for re-quantification of duty limited to the normal period, with no penalty imposed.
Source: taxscan.in
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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