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Issues:
1. Interpretation of Notification No. 156/86-Cus. regarding the benefit of duty concession for accessories imported along with machines. 2. Determining whether accessories imported were to be treated as component parts of the machines. 3. Application of the Accessories (Condition) Rules, 1963 in the assessment of duty for imported accessories. 4. Analysis of the High Court's ruling on the distinction between accessories and components. 5. Consideration of the manufacturer's catalog regarding the optional nature of the imported accessories. Issue 1 - Interpretation of Notification No. 156/86-Cus.: The judgment revolved around the interpretation of Notification No. 156/86-Cus. and whether the benefit of duty concession applied to accessories imported along with machines. The appellants claimed the benefit under this notification for accessories imported along with a CNC Turret Punch Press and Control blocks, which was disputed by the Customs authorities. Issue 2 - Treatment of Accessories as Component Parts: The Tribunal analyzed whether the imported accessories, such as those for the Punch Press and cylindrical grinder, could be considered as "component parts" of the respective machines. The judgment highlighted the distinction between accessories and components based on a ruling by the Bombay High Court, emphasizing that accessories are supplementary or secondary to the main subject and are not essential elements of a machine. Issue 3 - Application of Accessories (Condition) Rules, 1963: The judgment examined Rule 2 of the Accessories (Condition) Rules, 1963, which stipulates that accessories imported along with an article shall be charged at the same rate of duty if they are compulsorily supplied along with the article. The Tribunal found that this rule was not applicable in the present case as the accessories were optional according to the manufacturer's catalog. Issue 4 - High Court's Ruling on Distinction Between Accessories and Components: The Tribunal considered the Bombay High Court's ruling on the distinction between accessories and components, emphasizing that components are essential elements of a machine, while accessories are aids to the machine and not indispensable. This distinction influenced the Tribunal's decision that accessories of the machines were not eligible for the duty concession under the notification. Issue 5 - Manufacturer's Catalog and Optional Accessories: The judgment highlighted that the manufacturer's catalog indicated the optional nature of the imported accessories, which supported the argument that the accessories were not compulsorily supplied along with the main machines. This fact further strengthened the Tribunal's decision to dismiss the appeals of the appellants. In conclusion, the Tribunal dismissed the appeals based on the interpretation of the relevant notifications, rules, and the distinction between accessories and components as established by legal precedents and the specific circumstances of the case.
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