2005 (10) TMI 356 - AT - Customs

Summary

Issues:
1. Classification of imported toner cartridges under customs tariff.
2. Determination of whether toner cartridges are parts of computer printers or accessories.

Issue 1: Classification of imported toner cartridges under customs tariff.

The case involved the classification of imported toner cartridges under the customs tariff. The appellant imported toner cartridges and filed two Bills of Entry for clearance of the goods at a 'nil' rate of duty under specific notifications. The original authority considered the goods as an accessory for a computer printer, while the first appellate authority deemed them a part of the computer printer. The dispute centered around the interpretation of the relevant tariff entry, specifically SI. No. 276 in the Table annexed to Notification No. 21/2002-Cus., which pertains to parts of machines of heading 8471. The key contention was whether the toner cartridges should be classified as parts of computer printers, attracting a 'nil' rate of duty, or as mere accessories.

Issue 2: Determination of whether toner cartridges are parts of computer printers or accessories.

The Tribunal analyzed whether the imported toner cartridges should be considered as parts of computer printers or accessories. The Revenue argued that the toner cartridges were accessories of computer printers and not integral parts, thus not eligible for the 'nil' rate of duty. The appellant, on the other hand, contended that the toner cartridges were essential components of the computer printer, without which the printer could not function. The Tribunal examined the relevant tariff entry and the nature of the relationship between the toner cartridges and the computer printer. It was established that the toner cartridges were indeed integral to the functioning of the computer printer, making them parts rather than mere accessories. The Tribunal emphasized that the printer could not operate without the toner cartridge, indicating its essential role in the printing process. Consequently, the Tribunal concluded that the toner cartridges should be classified as parts of the computer printer, affirming the benefit of the 'nil' rate of duty under the customs tariff. As a result, the appeal was dismissed, upholding the decision that the toner cartridges were parts of the computer printer and not accessories.

In summary, the judgment by the Appellate Tribunal CESTAT, Chennai, addressed the classification of imported toner cartridges under the customs tariff and determined that the toner cartridges should be considered as parts of computer printers rather than accessories. The decision was based on the essential role of the toner cartridges in the functioning of the computer printer, leading to the affirmation of the 'nil' rate of duty benefit.