Accessories duty classification requires Rule 2 of the Accessories (Condition) Rules and Section 156 analysis before exemption can stand.

Imported goods classed with accessories imported alongside main equipment required examination under Rule 2 of the Accessories (Condition) Rules, 1963 and its enabling source in Section 156 of the Customs Act, 1962. The first appellate authority had relied on Rule 2(a) of the Interpretative Rules but omitted the specific accessories regime governing whether such items attract the same duty treatment as the main article. Because those provisions directly affected classification and exemption, the order could not stand. The matter was remanded for fresh decision after considering the relevant legal provisions and following natural justice.

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Issues: Whether the first appellate authority's classification of the imported goods and grant of exemption could be sustained without considering Rule 2 of the Accessories (Condition) Rules, 1963 and the statutory source of that rule under Section 156 of the Customs Act, 1962.

Analysis: The imported goods were being classified along with accessories imported with the main equipment. The appellate authority relied on Rule 2(a) of the Interpretative Rules, but did not consider Rule 2 of the Accessories (Condition) Rules, 1963, which governs whether accessories and spare parts imported with an article are to be charged at the same rate of duty as the main article. The order also omitted consideration of the enabling provision in Section 156 of the Customs Act, 1962. Since these provisions had a direct bearing on the classification and duty treatment of the accessories, the order required reconsideration.

Conclusion: The impugned order could not be sustained and the matter was remanded for fresh decision after considering the relevant legal provisions and after following the principle of natural justice.

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