Assessable value of imported machinery excludes separately uncharged spare parts when invoice value is accepted as the assessment basis.

Spare parts imported with second-hand machinery were considered under the Accessories (Condition) Rules, 1966 and the relevant accessories notification to determine whether they formed part of the machine's assessable value. The appellate authority noted that where accessories or spares are compulsorily supplied with the article and no separate charge is made, they are assessable at the same rate as the article. On the stated facts, there was no allegation of undervaluation of the machine or separate payment for the spares, so the invoice value was accepted as the proper basis of assessment and the spare parts were not separately includible.

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Issues: Whether the value of spare parts imported along with second-hand machinery was required to be included in the assessable value of the machine.

Analysis: The appellate authority applied the Accessories (Condition) Rules, 1966 and the relevant notification governing accessories, spare parts and repairing implements imported along with the article. It found that where such spare parts are compulsorily supplied with the article and no separate charge is made for them, they are assessable at the same rate as the article. On the facts, there was no allegation that the value of the machine was understated or that any extra payment had been made for the spares, and the invoice value was accepted as the proper basis of assessment.

Conclusion: The spare parts were not separately includible in the machine's assessable value, and assessment on the invoice value was upheld.

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