Case: Collector of Customs, Bombay Vs. Perfect Machine Tools Company Private Limited

1. This appeal is directed against the judgment datedpassed by the Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as "the Tribunal"). The respondent had imported consignment of "Klingelnberg Involute and Helix Tester" Model PFS 600 with accessories/attachments. The said equipment included Electronic Pitch Tester Attachment. The question for consideration is whether the concessional rate of customs duty on the basis of Notification No. 49/E No. Bud (Cus)/78 datedcan be held to be applicable in respect of the said Electronic Pitch Tester Attachment2. By Notification No. 49/E No. Bud (Cus)/78 datedissued in exercise of the powers conferred by(1) of Section 25 of the Customs Act exemption had been granted in respect of goods specified in the table to the said notification and falling within Chapter 90 of the First Schedule to the Customs Tariff Act, 1975 when imported into India from so much of that portion of the duty of customs leviable thereon, as was in excess of 25% ad valorem. "Gear Profile and Helix Tester" was mentioned at Serial No. 2 of the table3. The respondent claimed the benefit of the concessional rate of customs duty in respect of the entire equipment including the Electronic Pitch Tester Attachment. The Assistant Collector of Customs held that benefit of the concessional duty could not be extended to the Electronic Pitch Tester Attachment and was available only in respect of the main machine. The Collector of Customs (Appeals), however, accepted the claim of the respondent and held that concessional rate of duty was also chargeable on the import of the Electronic Pitch Tester Attachment. The Tribunal, by the impugned judgment, has affirmed the said view of the Collector (Appeals). Hence this appeal

Court's reasoning:
6. The Tribunal, in our opinion, was in error in construing the notification datedto hold that since the Electronic Pitch Tester Attachment has not been expressly excluded in the said notification it must be treated to have been included therein. The said view of the Tribunal is not in consonance with the principle laid down by this Court in Novopan India Ltd. for construing a notification granting exemption from duty. In accordance with the said principle it must be held that when an accessory to a machine is imported with the machine, unless the accessory has been expressly included in the exemption notification it would not be entitled to the concessional rate of customs duty under the notification datedHaving regard to the finding recorded by the Tribunal, the Electronic Pitch Tester Attachment must be held to be an accessory of the Helix Tester 1 imported by thein the absence of the said attachment the machine can be operated. Once it is held that the Electronic Pitch Tester Attachment is an accessory to the main machine, it must be held that since the notification providing for concessional rate of customs duty has not expressly included the accessories for the purpose of grant of concessional duty, the benefit of the concessional duty would not be available in respect of such accessory. In these circumstances, we are unable to uphold the impugned judgment of the Tribunal