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TMI Blog1989 (8) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... eaded that the foot rest was an optional accessory and not an integral part of a scooter and 60 foot rests were sold for every 100 scooters. The appellants have relied on a Government of India, Ministry of Industry letter No. 5(23)/69-AE Ind(I) dated 27th November, 1969 addressed to the appellants and had prohibited the assessee from selling of foot rests as an integral part of the scooter. It is further contended that even controlling Ministry have recognised the fact that the foot rest was only accessory and an option was given to the customer. The learned Assistant Collector had accepted the contention of the appellants and had held that foot rest was not an essential part of the scooter and scooter could run without the foot rest and the foot rest was an accessory. He had relied on a Government of India s letter and had withdrawn the 5 show cause notices-cum-demand notices mentioned in Order-in-Original. The Revenue being not satisfied with the order of the Assistant Collector had filed an application on EA-2 form before the Collector of Central Excise (Appeals) to be treated as an appeal. The learned Collector of Central Excise (Appeals) relying on a provision of Bombay Motor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of battery, battery charger and attachments and accessories such as load back rest, extra set of lights, ram attachment, crane attachment, are not includible in the assessable value for sales tax. (5) 1987 (31) E.L.T. 344 (Madras) - T.I. Miller Ltd. v. Union of India Others. Dynamo lamp not a part or a component of the cycle but accessory. Cycle can function without a dynamo. Merely because a cycle must have light during the night therefore dynamo lamp must be treated as a part thereto has no relevance in relation to classification. 3. The learned Senior Advocate has farther argued that in view of the various judgments cited by him the appeal filed by the appellants may be allowed. 4. Shri G.V. Naik, the learned Joint Chief Departmental Representative who has appeared on behalf of the respondent has referred to the practice prevalent in the Kanpur Collectorate and has stated that the value of the foot rest is included in the assessable value of the scooter for purposes of assessment. He has referred to page 12 of the appellants paper book which is the letter dated 27th November, 1969 and stated that the letter issued by the Ministry of Industry cannot help the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id letter is reproduced below: It is also understood that the foot rest supplied by you to the customers although regarded as an extra fitment, comes fitted with the scooter from your factory, and no option is given to the customer in regard to the supply of this item. The same position holds good in respect of the supply of the plastic bottle. In view of this, I am to request you to discontinue with immediate effect the supply of these items to the customer as an integral part of the scooter/ It is an established principle that entries in the Tariff should be interpreted according to the common parlance or the market understanding. Scooter is sofisticated conversion of motor cycle. Encyclopaedia Britannica Vol. VII, page 58 15th Edition describes scooter as under: The more sophisticated motor scooter originated in Italy soon after World War II, led by manufacture of a 125-cubic-centimetre model. Despite strong competition from Germany, France, Austria, and Britain, the Italian scooters maintained the lead in the diminishing market. The scooter has small wheels from 8 to 14 inches (20 to 36 centimetres) in diameter, and the rider sits inside the frame. Power units are place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the common parlance or market understanding. Para Nos. 65, 66, 67, 68 72 reproduced below: As explained above, it appears to me that the Legislature could not have intended that a manufacturer should be at liberty to constructively or notionally strip down the product he has made by asking for the exclusion of certain parts on the ground that they are not essential and therefore are only accessores . In support of this view there is also the established principle that entries in the Tariff should be interpreted according to common parlanceor the market understanding. Thus, the ordinary customer for a car would expect it to be equipped with various meters, windscreen wipers, a rear view mirror, 9 spare wheel, and soon. In other words, a motor car as known to the-market, and particularly to those who deal in or with motor cars, would be equipped with these items as well as a number of other which would not be essential for the bare functioning of the car. Since however the term motor car has to be interpreted in the sense in which it is known to the market, it would not be permissible for a manufacturer who markets a motor car equipped with such parts to seek their e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch housed the impellers, comprised the power driven pump , and the column assembly, through which water or liquid would go up, and the discharge head assembly, through which water or liquid is discharged and passed on to the distribution system, were merely accessories of the pump. Evidence as to the trade understanding was produced by the petitioners, in the shape of one Lalchandani, who was a technically qualified man as well as an industrialist. The Court took note of the definition of the term accessories as adopted by the Supreme Court in Annapurna Carbon Industries Co. v. State of Andhra Pradesh (37 STC 378). It quoted the following paragraph from that judgment :- We find that the term accessories" is used in the Schedule to describe goods which may have been manufactured for use as an aid or addition. A sense in which the word accessory is used is given Webster s Third New International Dictionary as follows: an object or device that is not essential in itself but that adds to the beauty, convenience, or effectiveness of something else . Other meanings given there are supplementary or secondary to something of greater or primary importance ; additional ; any of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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