JUDGMENT

S.B. Sinha, J.-The Revenue is in appeal before us being aggrieved by and dissatisfied with the judgment and order dated 29.08.2003 passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Bangalore whereby and whereunder the appeal filed by the Respondent herein from an order passed by the Commissioner of Central Excise, Pondicherry dated 27.1.2003 was allowed holding that no central excise duty is payable on a software loaded in a hardware, i.e., computer.

FACTS :

2. The Respondent is a company manufacturing computers, peripherals, servers, note books and accessories falling under different headings of Chapter 84 of the Schedule appended to the Central Excise Tariff Act, 1985. Upon a licence obtained by WIPRO, the Respondent, on orders received from the customers load operational softwares. While calculating the amount of central excise payable thereupon, it would deduct the value of the operational softwares from the total value of the computer supplied to the customers. The revenue objected to the said procedure on the premise that excise duty is payable on the entire value of the computer including the value of operational softwares.

3. A show c