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Issues:
1. Classification of power cells under Notification No. 43/85-Cus. 2. Eligibility of power cells for concessional rate of duty under the notification. Issue 1: The dispute in this case revolves around the classification of power cells imported by the appellant under Notification No. 43/85-Cus. The appellant claims that the power cells are parts of wrist watches falling under Chapter 91 and should be eligible for the benefit of the notification. However, the Revenue argues that the power cells are not part of wrist watches and should be classified under Heading 85.06 of the Customs Tariff Act, making them ineligible for the notification. The Tribunal referred to previous cases to support its decision. In the case of Electronic & Engineering Co. vs Commissioner of Cus., Bombay, the Tribunal held that primary cells and batteries are standalone articles and not parts of any other machine, classifying them under Heading 85.06. Another case, C.C., Madras vs M/s. Kodi Medical Electronics (P) Ltd., emphasized that batteries are merely power sources and not integral parts of machines. Issue 2: The Notification No. 43/85-Cus. provides a concessional rate of duty for components of analog wrist watches falling under Chapter 91. The Tribunal analyzed various decisions to conclude that power cells, being standalone articles, cannot be considered parts of wrist watches. Despite the appellant's arguments relying on catalogues, work instructions, and assembly charts, the Tribunal held that batteries/cells are separately classifiable under Tariff Heading 85.06 C.T.A. 1975. The Tribunal dismissed the appeal, emphasizing that the benefit of the notification is limited to component parts falling under Chapter 91, which does not include primary cells or batteries. In summary, the Tribunal upheld the classification of power cells under Heading 85.06, denying them the benefit of Notification No. 43/85-Cus. due to their standalone nature as articles separate from wrist watches. The judgment clarified that the notification applies only to component parts falling under Chapter 91, excluding primary cells or batteries. The decision was based on established principles of classification and previous tribunal rulings, emphasizing the distinct categorization of power cells as standalone items.
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