SBI v. Collector of Customs

1 SCC 727Reported decision2000#6797 most cited

What is SBI v. Collector of Customs authority for?

The right to reproduce computer software is distinct from the right to use it; reproduction constitutes parting with copyright, while non-exclusive use does not.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2013 to 2024.

Also referred to as

SBI v. Collector of Customs · 2000 1 SCC 727 · computer software · royalty · copyright · section 14 Copyright Act · reproduction · use · EULA

Sections most often in play

Section 143(3)Section 144C(13)Section 195Section 9(1)(vi) explanation 2(iva)

Issues it is cited on

section 14(a)section 141installation pesection 9(i)section 52section 2(43)section 193copyrighted articlesection 14(1)section 90(1)agency pefixed place pe

Judgments citing SBI v. Collector of Customs

Saxo Bank A/S, Noida vs. ACIT Intl. Taxation, Gurgaon

In the result, the appeal of the assessee is allowed

ITA 2010/DEL/2023[2020-21]Status: DisposedITAT Delhi16 Apr 2024AY 2020-21

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Vizay B. Vasanta, CIT DR
Section 143(3)Section 195

…ct, or create any interest in any such rights so as to attract section 30 of the Copyright Act. (vi) The right to reproduce and the right to use computer software are distinct and separate rights, as has been recognized in SBI v. Collector of Customs, (2000) 1 SCC 727 (see paragraph 21), the former amounting to parting with copyright and the latter, in the context of non-exclusive EULAs, not being so.” 20. A reading of the above judgment would clearly show that for the payment received by the assessee to be taxed as "royalty", it is essential to show a transfer of copyright in the software to do any of the acts…

Volvo Information Technology Ab, Sweden vs. DCIT Int. Tax. Circle -3(1)(1), New Delhi

In the result, assessee’s appeals in ITA No

ITA 2780/DEL/2022[2015-16]Status: DisposedITAT Delhi20 Dec 2023AY 2015-16

Bench: Shri Kul Bharat & Dr. B.R.R. Kumar

Section 194CSection 9(1)(vi)

…Act, or create any interest in any such rights so as to attract section 30 of the Copyright Act. vi) The right to reproduce and the right to use computer software are distinct and separate rights, as has been recognized in SBI v. Collector of Customs, (2000) 1 SCC 727 (see paragraph 21), the former amounting to parting with copyright and the latter, in the context of non-exclusive EULAs, not being so. xxxxx 173. Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/u…

Volvo Information Technology Ab, Sweden vs. DCIT, Intl. Taxation, Circle- 3(1)(1), New Delhi

In the result, assessee’s appeals in ITA No

ITA 393/DEL/2018[2014-15]Status: DisposedITAT Delhi20 Dec 2023AY 2014-15

Bench: Shri Kul Bharat & Dr. B.R.R. Kumar

Section 194CSection 9(1)(vi)

…Act, or create any interest in any such rights so as to attract section 30 of the Copyright Act. vi) The right to reproduce and the right to use computer software are distinct and separate rights, as has been recognized in SBI v. Collector of Customs, (2000) 1 SCC 727 (see paragraph 21), the former amounting to parting with copyright and the latter, in the context of non-exclusive EULAs, not being so. xxxxx 173. Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/u…

ACIT(Ltu-1), Mumbai vs. M/S. Tcs Ltd, Mumbai

ITA 5904/MUM/2019[2014-15]Status: DisposedITAT Mumbai15 Sept 2023AY 2014-15

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S. ()

Section 10ASection 115JSection 14ASection 19Section 40Section 90(1)(a)

…1 ITA 5199/Mum/2019 ITA 5904/Mum/2019 M/s TCS Ltd IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI BEFORE SHRI VIKAS AWASTHY (JUDICIAL MEMBER) AND Ms. PADMAVATHY S. (ACCOUNTANT MEMBER) I.T.A. No.5199/Mum/2019 (Assessment year: 2014-15) M/s Tata Consultancy Services vs Deputy Commissioner of Income-tax Limited, 9th Floor, Nirmal Building LTU-1, Mumbai, 29th Floor, Nariman Point, Mumbai-400 021 Centre One, World Trade Centre PAN : AAACR4849R Cuffe Parade, Mumbai-400 005 APPELLANT RESPONDENT I.T.A. No.5904/Mum/2019 (Assessment year: 2014-15) Assistant Commissioner of Income- vs M/s Tata Consultancy S…

Tata Consultancy Serrvices Limited, Mumbai vs. DCIT-1, Mumbai

ITA 5199/MUM/2019[2014-15]Status: DisposedITAT Mumbai15 Sept 2023AY 2014-15

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S. ()

Section 10ASection 115JSection 14ASection 19Section 40Section 90(1)(a)

…1 ITA 5199/Mum/2019 ITA 5904/Mum/2019 M/s TCS Ltd IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI BEFORE SHRI VIKAS AWASTHY (JUDICIAL MEMBER) AND Ms. PADMAVATHY S. (ACCOUNTANT MEMBER) I.T.A. No.5199/Mum/2019 (Assessment year: 2014-15) M/s Tata Consultancy Services vs Deputy Commissioner of Income-tax Limited, 9th Floor, Nirmal Building LTU-1, Mumbai, 29th Floor, Nariman Point, Mumbai-400 021 Centre One, World Trade Centre PAN : AAACR4849R Cuffe Parade, Mumbai-400 005 APPELLANT RESPONDENT I.T.A. No.5904/Mum/2019 (Assessment year: 2014-15) Assistant Commissioner of Income- vs M/s Tata Consultancy S…

Tata Consultancy Services Ltd, Mumbai vs. ACIT Large Tax Payer Unit-1, Mumbai

797/Mum/2018

ITA 1769/MUM/2018[2013-14]Status: DisposedITAT Mumbai11 Apr 2022AY 2013-14
Section 143(3)Section 2Section 2(43)Section 37Section 40Section 90

…CSSON A. B. 120121 343 ITR 470 (Delhi), DIT v. Nokia NETWORKS OY [2013] 358 ITR 259 (Delhi), D1T V. INFRASOFT LTD. [2014] 3 ITR-OL 333 (Delhi) and CIT v. Z'I'E CORPORATION [2017] 392 ITR 80 (Delhi) approved. STATE BANK OF INDIA V. COLLECTOR OF CUSTOMS (2000) 1 SCC 727 relied on. Royalty, under section 90)(vi) of the Act, means the transfer of all or any rights, including the g-ranting of a licence, in respect of any copyright in a literary work. Under article 3(2) of the Double Taxation Avoidance Agreement between India and Singapore, the definition of the term "royalties", shall have the meaning assigned to it…

DCIT, Circle- 2(1)(1), International Taxation, New Delhi vs. Hp Services (Singapore) Pvt. Ltd., Singapore

In the result both appeals of the revenue department stands dismissed

ITA 3210/DEL/2018[2010-11]Status: DisposedITAT Delhi31 Mar 2022AY 2010-11

Bench: Shrir. K. Panda & Shri N. K. Choudhry

For Appellant: Shri Satyen Sethi, AdvFor Respondent: Shri Anand Kumar Kedia, CIT DR
Section 143(2)Section 144CSection 250(6)Section 9(1)(vi)

…various judgments passed by Hon‟ble Apex Court and High Courts as well and observed that the right to reproduce and right to use computer software are distinct and separate rights, as has been recognized in State Bank of India Vs. Collector of Customs (2001) 1 SCC 727, the former amounting to parting with copyright and latter in the context of non-exclusive EULAs, not being so. 7.3 As in the instant case, the customers of the Assessee have been given right to reproduce the software and therefore, payment to the Assessee would constitute the „royalty‟. The customers of the Assessee are not only getting the right…

DCIT, Circle- 2(1)(1), International Taxation, New Delhi vs. Hp Services (Singapore) Pvt. Ltd., Singapore

In the result both appeals of the revenue department stands dismissed

ITA 3209/DEL/2018[2009-10]Status: DisposedITAT Delhi31 Mar 2022AY 2009-10

Bench: Shrir. K. Panda & Shri N. K. Choudhry

For Appellant: Shri Satyen Sethi, AdvFor Respondent: Shri Anand Kumar Kedia, CIT DR
Section 143(2)Section 144CSection 250(6)Section 9(1)(vi)

…various judgments passed by Hon‟ble Apex Court and High Courts as well and observed that the right to reproduce and right to use computer software are distinct and separate rights, as has been recognized in State Bank of India Vs. Collector of Customs (2001) 1 SCC 727, the former amounting to parting with copyright and latter in the context of non-exclusive EULAs, not being so. 7.3 As in the instant case, the customers of the Assessee have been given right to reproduce the software and therefore, payment to the Assessee would constitute the „royalty‟. The customers of the Assessee are not only getting the right…

DCIT, Circle- 3(1)(2), Intl. Taxation, New Delhi vs. Siemens Product Lifecycle Management Software Inc., Gurgaon

In the result, the appeal of the Revenue is dismissed

ITA 3413/DEL/2018[2013-14]Status: DisposedITAT Delhi08 Feb 2022AY 2013-14

Bench: Shri G.S. Pannu, Hon’Ble & Shri C.N. Prasadasstt. Year: 2013-14

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri Munesh Kumar, CIT DR
Section 143(3)Section 144C(3)(b)Section 9

…1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE PRESIDENT AND SHRI C.N. PRASAD, JUDICIAL MEMBER Asstt. Year: 2013-14 DCIT, Circle-3 (1)(2), Vs. Siemens Product Lifecycle INTL TAXATION, Management Software Inc., New Delhi. Gurgaon (Appellant) (Respondent) Assessee by: Shri Salil Kapoor, Advocate Saumya Singh, Advocate Ananya Kapoor, Advocate Department by : Shri Munesh Kumar, CIT DR Date of Hearing 28/12/2021 Date of 08/02/2022 pronouncement O R D E R PER C.N. PRASAD, JM : This appeal is filed by the Revenue against the order of the Commissioner of Income Tax (Ap…

Zte Corporation, Gurgaon vs. DCIT (International Taxation), Gurgaon

ITA 1930/DEL/2020[2017-18]Status: DisposedITAT Delhi30 Jun 2021AY 2017-18
Section 133A

…Act, or create any interest in any such rights so as to attract section 30 of the Copyright Act. vi) The right to reproduce and the right to use computer software are distinct and separate rights, as has been recognized in SBI v. Collector of Customs, (2000) 1 SCC 727 (see paragraph 21), the former amounting to parting with copyright and the latter, in the context of non-exclusive EULAs, not being so. 120. Consequently, the view contained in the determinations of the AAR in Dassault (AAR) (supra) and Geoquest (AAR) (supra) and the judgments of the High Court of Delhi in Ericsson A.B. (supra), Nokia Networks OY (…

Zte Corporation, China vs. JCIT (OSD) International Taxation, Gurgaon

ITA 1474/DEL/2020[2016-17]Status: DisposedITAT Delhi30 Jun 2021AY 2016-17
Section 133A

…Act, or create any interest in any such rights so as to attract section 30 of the Copyright Act. vi) The right to reproduce and the right to use computer software are distinct and separate rights, as has been recognized in SBI v. Collector of Customs, (2000) 1 SCC 727 (see paragraph 21), the former amounting to parting with copyright and the latter, in the context of non-exclusive EULAs, not being so. 120. Consequently, the view contained in the determinations of the AAR in Dassault (AAR) (supra) and Geoquest (AAR) (supra) and the judgments of the High Court of Delhi in Ericsson A.B. (supra), Nokia Networks OY (…

DCIT, Int. Tax., .Circle Gurgaon, Gurgaon vs. Zte Corporation, China

ITA 8185/DEL/2019[2016-17]Status: DisposedITAT Delhi30 Jun 2021AY 2016-17
Section 133A

…Act, or create any interest in any such rights so as to attract section 30 of the Copyright Act. vi) The right to reproduce and the right to use computer software are distinct and separate rights, as has been recognized in SBI v. Collector of Customs, (2000) 1 SCC 727 (see paragraph 21), the former amounting to parting with copyright and the latter, in the context of non-exclusive EULAs, not being so. 120. Consequently, the view contained in the determinations of the AAR in Dassault (AAR) (supra) and Geoquest (AAR) (supra) and the judgments of the High Court of Delhi in Ericsson A.B. (supra), Nokia Networks OY (…

Engineering Analysis Centre of Excellence Private Limited vs. The Commissioner of Income Tax

C.A. No.-008733-008734 - 2018Supreme Court02 Mar 2021

Bench: HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN

…h can then be characterised as royalty for the exclusive right to reproduce the book in the territory mentioned by the licence. 48. An instructive judgment of this Court in this respect is to be found in State Bank of India v. Collector of Customs, (2000) 1 SCC 727. In this case, the State Bank of India imported a consignment of computer 75 software and manuals from Kindle Software Ltd., Dublin, Ireland, and cleared the goods for home consumption, and filed an application before the Additional Collector of Customs, claiming a refund of customs duty. After setting out section 14 of the Customs Act…

M/S. K.R.C.D. (I) Pvt. Ltd vs. Commnr. of Central Excise, Mumbai

The appeal is allowed

C.A. No.-006709-006709 - 2004Supreme Court23 Apr 2015

…usic cassette or a popular film or a musical score is imported into India duty will necessarily have to be charged on the value of the final product. In this behalf we may note that in State Bank of India v. Collector of Customs [(2000) 1 SCC 727 : (2000) 1 Scale 72] the Bank had, under an agreement with the foreign company, imported a computer software and manuals, the total value of which was US $ 4,084,475. The Bank filed an application for refund of customs duty on the ground that the basic cost of software was US $ 401.047. While the rest of the amount of US $ 3,683,428 wa…

M/S. K.R.C.D. (I) Pvt. Ltd vs. Commnr. of Central Excise, Mumbai

The appeal is allowed

C.A. No.-006709-006709 - 2004Supreme Court23 Apr 2015

…usic cassette or a popular film or a musical score is imported into India duty will necessarily have to be charged on the value of the final product. In this behalf we may note that in State Bank of India v. Collector of Customs [(2000) 1 SCC 727 : (2000) 1 Scale 72] the Bank had, under an agreement with the foreign company, imported a computer software and manuals, the total value of which was US $ 4,084,475. The Bank filed an application for refund of customs duty on the ground that the basic cost of software was US $ 401.047. While the rest of the amount of US $ 3,683,428 wa…

Director of Income Tax vs. Infrasoft Ltd

ITA/1034/2009HC Delhi22 Nov 2013
Section 143(3)Section 260ASection 4Section 9(1)(vi)

…ic cassette or a popular film or a musical score is imported into India duty will necessarily have to be charged on the value of the final product. In this behalf we may note that in State Bank of India v. Collector of Customs MANU/SC/0017/2000 : (2000) 1 SCC 727 the Bank had, under an agreement with the foreign company, 2013:DHC:6018 ======================================================================= ITA 1034/2009 Page 141 of 174 imported a computer software and manuals, the total value of which was US Dollars 4,084,475. The Bank filed an appl…

SBI v. Collector of Customs (1 SCC 727) — Cited in 16 Judgments | BharatTax