1997 (8) TMI 275 - AT - Customs

Summary

Issues:
1. Classification of objective lenses for cameras as accessories or parts under the Customs Act.
2. Interpretation of the Import-Export Policy regarding the classification of camera lenses.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Madras involved a dispute over the classification of 400 objective lenses for cameras as accessories or parts under the Customs Act. The department contended that the lenses were accessories requiring a specific license, while the respondents argued that they were parts of cameras and should be allowed under the Open General License (OGL).

The Commissioner of Customs (Appeals) held that the objective lenses should be treated as parts of cameras and allowed under OGL. The Commissioner noted that the lenses did not change the basic function of the camera and were fitted as replacements for the normal lens. The Commissioner also highlighted that the SLR camera itself was allowed free of license under OGL, further supporting the classification of the lenses as parts.

In the grounds of appeal, the department argued that the lenses should be classified as accessories based on the definition in the ITC Policy. However, the Tribunal rejected this argument, emphasizing that the lenses were used as part of the camera itself for taking pictures from a distance, rather than for increasing the efficiency of the camera.

The Tribunal considered the definitions of accessories and parts, noting that while accessories contribute to the efficiency of equipment, the lenses were used as integral components of the camera for specific functions. The Tribunal agreed with the reasoning of the Commissioner (Appeals) and dismissed the appeal, affirming that the lenses were to be treated as parts of the cameras and allowed under OGL.

In conclusion, the Appellate Tribunal upheld the decision of the Commissioner (Appeals) and dismissed the department's appeal, ruling that the objective lenses for cameras were to be classified as parts rather than accessories under the Customs Act and the Import-Export Policy.