The Commercial Bank of Ceylon v The Director General of Customs and Others – sllr 2003 volume 2 page 386

In the case between The Commercial Bank of Ceylon and the Director General of Customs and others, the court addressed the issue of whether software acquired under a licensing arrangement qualifies as “goods, wares and merchandise” liable for customs duty under Section 10 of the Customs Ordinance. It was held that software obtained through a licensing agreement, rather than outright sale, constitutes intangible personal property and is not subject to customs duties on the software value; only the value of the physical carrier (e.g., diskettes, CDs) is dutiable. The court’s reasoning reaffirmed the principle that mere licensing does not amount to a sale of goods for customs purposes. Reference was made to the Customs Ordinance, including Schedules A and E, the Sale of Goods Ordinance, and es