1989 (7) TMI 237 - AT - Customs

Summary

Issues:
1. Whether the spare parts imported along with the main equipment should be charged at the same rate of duty as the main equipment.
2. Whether the spare parts qualify for classification under Tariff Heading 84.33.

Analysis:
1. The appellants imported a simplex sheet cutter along with spare parts under Bill of Entry No. D-1468. They claimed a refund of duty, arguing that the spare parts were intended for the sheet cutter, exclusively designed for it, and compulsorily supplied without a separate charge. The Assistant Collector rejected the claim stating the spare parts were separately invoiced. The Collector (Appeals) upheld the decision. The appellants argued that the spare parts were included in the total value of the goods and should be charged under the same tariff heading as the main machine. The Tribunal noted that the accessories supplied with the main machine were covered by the Accessories (Conditions) Rules, 1963, as they were compulsorily supplied without a separate charge. However, the spare parts in question were separately charged by the foreign supplier, not meeting the conditions of the Rules.

2. The appellants further argued that the spare parts should be assessed under Tariff Heading 84.33 as they were tailor-made for the imported machine. They referred to Section Note 2(b) of Section XVI of the Customs Tariff Act, 1975, which states that parts suitable for use solely with a particular machine should be classified with that machine. The Tribunal, while acknowledging that the spare parts did not qualify under the Accessories (Conditions) Rules, remanded the matter to the Assistant Collector for examination of whether the spare parts could be assessed under Tariff Heading 84.33 based on Section Note 2(b) of Section XVI.

In conclusion, the Tribunal allowed the appeal by remand on the limited issue of assessing the spare parts under Tariff Heading 84.33, directing further examination by the Assistant Collector.