Nov 13: It’s a very good news for IT companies as well as for the Indian customers who prefer imported laptop over domestic as the Supreme Court of India has ordered the government to scrap the additional duty over imported laptops quoting that laptops are not organised set like desktops, so government should not charge additional duty to imported laptops that is levied on desktop.
Hearing a challenging appeal filed by the Acer India Pvt. Ltd against Custom, Excise and Service Tax department of India, Indian Apex Court upheld the appeal of challenger and ruled not to levy the 7 % additional duty on Laptop because laptop and desktop are both different things despite of having similar work and function.
Justice S B Sinha, the head of the hearing bench said, “We are of the opinion that a laptop or a notebook, being an integrated item, cannot be a set of a CPU with monitor, mouse and key board.”
“The court observed that a desktop is formed when CPU, monitor, mouse and keyboard combines together, on the other hand laptop comes in an integrated and inseparable form and thus cannot be said to be a set of all these parts”.
The government rule of ‘Additional Duty Rules, 2004’ is in terms of Computers, added the court. Though court also upheld the judgement of 'Customs, Excise, and Services Tax; the Appellate Tribunal said that additional duty is just to provide a level-playing field, and protect domestic manufacturers.
According to the customs department, Laptop and Desktop cannot be classified into the different categories because there are not much of a difference between a laptop and a desktop and the function of both is very similar.
But Bangalore based Acer India Pvt. Ltd. challenged the 7% ‘additional levied duty’ asked by Custom, Excise and Service Tax department in the court, quoting that additional levy duty should not be applied on the imported laptops because laptop and desktop are known differently in the market.
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