1996 (12) TMI 181 - AT - Customs

Summary

Issues Involved:
1. Classification of the imported Spectrometer and its built-in computer.
2. Requirement of a separate import license for the computer.
3. Whether the computer should be assessed separately from the Spectrometer.

Issue-wise Detailed Analysis:

1. Classification of the Imported Spectrometer and its Built-in Computer:

The appellants argued that the imported item, a Jarrel-Asn Series 7000 Model 750V Atomcomp Director Reading Vacuum Spectrometer with essential accessories, including an Apple computer, should be assessed as a single unit. They contended that the computer is a dedicated part of the Spectrometer and cannot function without it. The Department, however, maintained that the Spectrometer and the computer are separate entities and should be assessed separately. The appellants provided various documents, including invoices, packing lists, and catalogues, to support their claim that the Spectrometer and the computer are integrated. They also cited a clarification from the Department of Electronics stating that no separate clearance is required for computers that are built-in integral parts of the equipment.

2. Requirement of a Separate Import License for the Computer:

The Department argued that the Apple computer is a general-purpose device and not a built-in part of the Spectrometer. Therefore, it requires a separate import license. They emphasized that the computer was packed separately for transportation, indicating it is not an integral part of the Spectrometer. The Department cited a previous Tribunal order (Glaxo Lab. (India) Ltd. v. C.C., Bombay) to support their stance that general-purpose computers should be classified separately.

3. Whether the Computer Should Be Assessed Separately from the Spectrometer:

The Tribunal observed that the modern direct reading Spectrometers, unlike traditional ones, incorporate computers to measure, process, and analyze data. The catalogues and pamphlets provided by the appellants clearly showed that the computer is an integral part of the Spectrometer system. The Tribunal noted that the Spectrometer would be non-functional without the computer, as admitted by the Additional Collector and the Department. The Tribunal further highlighted that the computer and the Spectrometer together constitute a single system, and the computer is essential for the Spectrometer's operation.

Conclusion:

The Tribunal concluded that the computer is an essential part of the Spectrometer and should not be assessed separately. The fact that the computer was packed separately for transportation does not change its status as an integral part of the Spectrometer. The Tribunal set aside the impugned order and accepted the appeal, ruling that the imported item, including the computer, should be assessed as a whole under the same heading without requiring a separate import license.