TMI Blog1987 (8) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... es namely:- (i) One unit of Hydraulic Extrusion Press (which has been considered to be the main machinery), (ii) Mandrel Internal Cooling system. (iii) Additional set of Tooling. (iv) Spares for use for two years commissioning spares. They claimed assessment of the goods under Heading 84.45/48 CTA read with Notification No. 40/78-Cus. 3. In respect of item (i), the Customs extended the benefit of the Notification at the time of clearance. There was and is no dispute about this item. The next 2 items were assessed on merits without the benefit of Notification No. 40/78. 4. In respect of item (iv) however the Assistant Collector ordered assessment at the highest rate applicable in terms of Section 19 of the Customs Act on the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and increase the service lift of the tools the function of this Mandrel Cooling Device appears to supply the cool and inside the insert pipes of the Mandrel and thus help cooling down the temperature of the latter. This function appears conform to the definition of Accessory . As per the Dictionary of technical terms by F.S. Grepain, an Accessory is a mechanical part of attachment but not necessarily a part of the machine but does made possible a wider range of work or better performance and as per the Explanatory notes to the CCCN accessories , are subsidiary devices used in connection with the machine tools - to perform a particular service relative to the main function of the machine. Since as per the manufacturer s leaflet the M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, do not deserve the concessional assessment. He submitted that the 2nd set of tooling was charged for separately. Referring to Accessories (Condition) Rules, 1963 he submitted that as the goods were charged separately and were not essential for the function of the machine, the Appellate Collector s order was wrong in extending to them the benefit of concessional notification. Submitting that Notification No. 40/78 applied to the machine only, the Ld. JDR emphasised that the notification had to be interpreted independently and strictly. In respect of the Mandrel Internal Cooling System item (ii), Shri Saha reiterated the grounds contained in the review show cause notice. 10. Shri J.N. Roy, Ld. Counsel for Hathwa submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alues were given only when customs required that such value should be given. He submitted that the Appellate Collector ignored some strong arguments (but the Bench did not have the benefit of the details of such arguments). Shri Roy submitted that the supplies of spare parts as parts of the main machinery was a standard practice. He also referred to the order of Central Board of Excise Customs wherein a reference was made to plant a term used by the ITC Policy book as nomenclature for the relevant 04L item. Shri Roy argued that the definition in ITC should apply to Tariff and in support of his argument referred to the note given to Schedule-I, ITC order, appendix 2, (78-79 Hand Book). Shri Roy relied on the manufacturer s certificate da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ality of the product and to increase the service life of the tools. This view was based on the catalogue pertaining to the machine. Noting that the cooling equipment is an accessory to the main machine, the Govt. recorded that the equipment is optional and not a compulsory supply. In the review notice, it was stated that the fact that it has been separately charged for in the invoice appears to corroborate the above facts . In their reply dated 16th Feb. 1982, Hathwa stated that the value given as DM 247000 was a consolidated value. We have perused the invoice. While the various instruments have been mentioned separately in detail the value was found to be consolidated. Therefore the allegation that separate value has been given to this it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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