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Determining whether imported goods are photocopying machines or components of photocopy machines. Analysis: The case involved two appeals filed by M/s. New Century Impex to ascertain if the goods imported were photocopying machines or components of such machines. The Appellant claimed to be actual users with a small-scale industry registered for manufacturing electronic goods, including photocopy machines. They imported reconditioned components of photocopy machines, constituting 60% to 70% of the total value, requiring 30% local components for assembly. The Appellant argued that the imported components were not complete machines and relied on various legal precedents to support their position. The Commissioner of Customs contended that the critical parts for photocopy machines were imported in CKD condition, resembling essential characteristics of photocopy machines. The learned Advocate for the Appellant emphasized the need for local components for functionality, distinguishing between peripherals and essential parts. They cited previous cases where importing a majority of parts did not classify the goods as complete machines. On the other hand, the Respondent argued that even incomplete articles with essential characteristics could be considered complete articles under Rule 2(a) of the Interpretative Rules. They relied on legal precedents supporting their stance and highlighted the import of critical components by the Appellant. After considering both arguments, the Tribunal noted that the Appellant had not imported all components, as acknowledged by the Commissioner's findings on locally procured items. Comparing the case to previous judgments, the Tribunal found that importing a significant portion of parts did not transform the goods into complete machines. The Tribunal distinguished the present matter from cases cited by the Respondent, emphasizing the specific circumstances and components involved. Ultimately, following the legal precedents cited by the Appellant's Advocate, the Tribunal ruled in favor of treating the imported goods as components of photocopy machines, allowing both appeals.
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