{"id":8080,"date":"2026-02-20T19:40:57","date_gmt":"2026-02-20T14:10:57","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8080"},"modified":"2026-02-20T19:40:57","modified_gmt":"2026-02-20T14:10:57","slug":"software-licence-value-to-be-included-in-imported-hardware-cost-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/software-licence-value-to-be-included-in-imported-hardware-cost-cestat","title":{"rendered":"Software Licence Value to Be Included in Imported Hardware Cost | CESTAT"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000415795\/software-integral-to-imported-hardware-later-imported-software-licence-value-to-be-incuded-in-cost-cestat\">Lakshmi Access Communications Systems Pvt. Ltd. vs. Commissioner of Customs, Bangalore (2026) 38 Centax 310 (Tri.-Bang)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Dr. D.M. Misra, <\/strong>Member (J) &amp; <strong>Shri Pullela Nageswara Rao<\/strong>, Member (T)<\/li>\n<li><strong>Shri B.N. Gururaj<\/strong>, Adv., for the Appellant.<\/li>\n<li><strong>Shri Maneesh Akhoury<\/strong>, Assistant Commissioner (AR), for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>An assessee imported hardware of a navigation system described as a touch media device containing etched\/embedded\/preloaded software along with printed licence key numbers, and such hardware was cleared first. Invoices relating to the hardware and software import came together, and thereafter, a separate Bill of Entry was filed for a paper software licence as if it were an import of software only. The department contended that the value of the software was includible in the device&#8217;s value because it formed part of the device itself. The importer contended that the value of software imported separately could not be added to the value of the device that had been imported earlier. The matter was accordingly placed before Customs, Excise and Service Tax Appellate Tribunal (CESTAT).<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The CESTAT held that the portable navigation system had imprinted licence keys and preloaded software licence keys. It held that, in such circumstances, enhancement of the value of the touch media device by including the value of the licence software imported subsequently was proper. The tribunal applied Section 14 of the Customs Act, 1962, while examining the valuation of the imported goods. Accordingly, the appeals were partly allowed in favour of the department.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2006%20(194)%20E.L.T.%20129%20(S.C.)&amp;itemType=AP\">Anjaleem Enterprises Pvt. Ltd. v. Commissioner<\/a> \u2014 2006 (194) E.L.T. 129 (S.C.) \u2014 Referred [Paras 7, 9]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2016%20(333)%20E.L.T.%20395%20(Tribunal-LB)&amp;itemType=AP\">Bhagyanagar Metals Ltd. v. Commissioner<\/a> \u2014 2016 (333) E.L.T. 395 (Tribunal-LB) \u2014 Followed [Paras 4.2, 7, 9]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2004%20(172)%20E.L.T.%20289%20(S.C.)&amp;itemType=AP\">Commissioner v. Acer India Ltd.<\/a> \u2014 2004 (172) E.L.T. 289 (S.C.) \u2014 Referred [Paras 3.2, 4.2, 11]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2018%20(361)%20E.L.T.%20577%20(S.C.)&amp;itemType=AP\">Commissioner v. Dilip Kumar and Company<\/a> \u2014 2018 (361) E.L.T. 577 (S.C.) \u2014 Referred [Para 4.2]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2018%20(360)%20E.L.T.%20769%20(S.C.)&amp;itemType=AP\">Commissioner v. Grasim Industries Ltd.<\/a> \u2014 2018 (360) E.L.T. 769 (S.C.) \u2014 Distinguished [Paras 3.3, 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2010%20(260)%20E.L.T.%203%20(S.C.)&amp;itemType=AP\">Commissioner v. Hari Chand Shri Gopal<\/a> \u2014 2010 (260) E.L.T. 3 (S.C.) \u2014 Referred [Para 4.2]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2002%20(142)%20E.L.T.%20513%20(S.C.)&amp;itemType=AP\">Commissioner v. Hindustan Lever Ltd.<\/a> \u2014 2002 (142) E.L.T. 513 (S.C.) \u2014 Referred [Para 3.2]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2009%20(237)%20E.L.T.%20458%20(Tribunal)&amp;itemType=AP\">Commissioner v. Vodafone Essar Guj. Ltd.<\/a> \u2014 2009 (237) E.L.T. 458 (Tribunal) \u2014 Referred [Para 3.2]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1997%20(89)%20E.L.T.%203%20(S.C.)&amp;itemType=AP\">PSI Data Systems Ltd. v. Collector<\/a> \u2014 1997 (89) E.L.T. 3 (S.C.) \u2014 Referred [Para 3.2]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1983%20(14)%20E.L.T.%201896%20(S.C.)&amp;itemType=AP\">Union of India v. Bombay Tyre International Ltd.<\/a> \u2014 1983 (14) E.L.T. 1896 (S.C.) \u2014 Referred [Para 4.2]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2021%2F2002-Cus.&amp;itemType=AP\">Notification No. 21\/2002-Cus.<\/a>, dated 1-3-2002 [Paras 2, 3.1, 3.2, 4.1, 7, 8]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2029%2F2010-Cus.&amp;itemType=AP\">Notification No. 29\/2010-Cus.<\/a> [Para 3.2]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Lakshmi Access Communications Systems Pvt. Ltd. vs. Commissioner of Customs,&hellip;<\/p>\n","protected":false},"author":19,"featured_media":8084,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-8080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Software Licence Value to Be Included in Imported Hardware Cost | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT rules software integral to imported hardware must be included in assessable value even if licence imported later; valuation under Customs Act upheld.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/software-licence-value-to-be-included-in-imported-hardware-cost-cestat\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Software Licence Value to Be Included in Imported Hardware Cost | CESTAT\" \/>\n<meta property=\"og:description\" content=\"CESTAT rules software integral to imported hardware must be included in assessable value even if licence imported later; 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