Battery charger treated as an accessory, not part of a mobile phone, so concessional tax rate did not apply.

A battery charger sold with a mobile phone in a composite package was held to be separately identifiable and commercially understood as an accessory, not an integral part of the cellular phone. Because the concessional entry covered cellular phones but did not expressly include accessories, the charger did not qualify for the concessional rate. Packing the charger with the phone did not convert the package into a composite good for that entry, and the residual schedule applied when the charger was sold as a separate commodity. The concurrent findings that it was not part of the phone were upheld in favour of the Revenue.

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Issues: Whether a battery charger sold along with a mobile phone in a composite package is part of the cell phone for the purpose of concessional tax, or is an accessory taxable at the general rate.

Analysis: The concessional entry covered cellular phones and did not expressly include accessories. The charger was found to be separately identifiable, separately saleable, and commercially understood as an accessory. The fact that it was packed with the phone did not make it an integral part of the cellular phone or convert the package into a composite good for the concessional entry. The residual schedule therefore applied to the charger when sold as a separate commodity, and the concurrent findings that it was not part of the cell phone were upheld.

Conclusion: The battery charger is an accessory and not part of the cell phone. The concessional rate applicable to cellular phones does not extend to the charger. The finding is against the assessee and in favour of the Revenue.

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