INDIA BUSINESS WORLD - NOVEMBER 16^th - NOVEMBER 30^th - 2007

SUPREME COURT EXEMPTS LAPTOPS FROM ADDITIONAL 7% CUSTOMS DUTY

In a judgement that could cheer the IT companies as well as the end-users, the Supreme Court has held that the government cannot levy additional 7% customs duty on notebook PCs (laptops) as in the case of desktop computers since the two are totally different.

While dismissing a petition filed by Commissioner of Customs, a bench headed by Justice S B Sinha said that the government cannot ask IT companies to pay seven per cent additional customs duty on notebook PCs, unlike desktops, as the two items were totally different though capable of performing same or similar functions. "We are of the opinion that a laptop or a notebook PC being an integrated item cannot be a set of a CPU with monitor, mouse and key board," the court said.