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TMI Blog1997 (8) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... imported leather covers totally valued at Rs. 3,78,106/- under Section 111(d) of the Customs Act, 1962, however, granting redemption on payment of fine of Rs. 1,20,000/- and also imposed a penalty of Rs. 30,000/- on the importers under Section 112 of the Customs Act, 1962. 2. The facts of the case are that the appellants filed Bill of Entry seeking clearance of the consignment of 2,300 pcs. of leather cases of different colours and makes meant for different models of cellular phones namely Ericsson, Siemens, Nokia and Motorola. On examination of the goods, it was reported that the goods are in the nature of consumer items requiring a specific import licence for their clearance. In the absence of a licence, the importation of the aforesai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries include cellular telephones, cordless telephones, pagers, VSA terminals and other such electronic items. The reference to attachments for telephones would normally refer to plugs, sockets, epters for power supply, recording devices and other such equipments. He has observed that it does not refer to leather cover for cellular telephone. He has held that when leather covers are imported separately they had to be treated on merits both for its classification and also for their eligibility for importation. Therefore, he has held that it is for this reason, that the covers had been classified under Heading 4201.00 of the Customs Tariff and not in the heading relevant for cellular telephones. He has held that these have to be treated on its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has also held that the said judgment was delivered in the context of levy of sales tax and does not support the appellants plea that the cellular phone covers imported are attachments for telephones freely importable under entry at Sl. No. 67(x) of Appendix XXXV of the Handbook of Procedures. She has observed that the leather covers in question are definitely not `part , `sub-assembly or `assembly within the definition of accessory at Para 7(i) of the Policy as such the same are clearly not attachment/accessories permitted to be freely importable under the Policy. Referring to the appellants plea the Commissioner held that the covers protect the phones from dust etc. and enhance the effectiveness of the phones, as such they are tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... import, hence penalty is not imposable. 6. The learned DR reiterated the departmental arguments. We are in agreement with the detailed and speaking order passed by both the authorities in the present case. The item cannot be considered as attachment for telephones , as claimed by the appellants under Sl. No. 67(x). The Para 7(i) of the Policy defines accessory or Attachment which is noted herein below : Accessory or Attachment means a part, sub-assembly or assembly that contributes to the efficiency or effectiveness of a piece of equipment without changing its basic functions." 7. The appellants have not been able to show that this leather cover can attribute to the efficiency and effectiveness of the cellular phones or equi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... telephones in terms of the definition appearing in Para 7(i) of the Policy defining the term `accessory or `attachment. On this aspect, the lower authorities have given a detailed finding and have held that the item is a consumer goods and does not contribute to the efficiency and effectiveness of the cellular phones. The term `attachment for telephone appearing in Sl. No. 67(x) refers to Subscriber and telephone equipments. Therefore, the attachment has to be something which has become a `part , `sub-assembly or `assembly contributing to the efficiency and its effectiveness of the equipment without changing its basic functions. The appellants have not produced any evidence nor they have shown how a cover can increase its effective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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