Integral part doctrine for watch straps upheld as they qualified for customs exemption under the relevant notification.

Watch straps were treated as integral parts of watches for exemption purposes under Notification No. 72/86-CE. Applying the Apex Court's view that a bracelet forms part of a watch, the Tribunal extended the same reasoning to watch straps and accepted that they fell within the notification as parts of watches. The Commissioner (Appeals)'s view was therefore upheld, and the Revenue's challenge failed.

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Issues: Whether watch straps were eligible for exemption under Notification No. 72/86-CE as part of watches.

Analysis: The availability of exemption turned on whether watch straps could be treated as an integral part of a watch. The Tribunal followed the Apex Court's view that a bracelet forms an integral part of the watch and applied the same reasoning to watch straps. On that basis, the Commissioner (Appeals)'s view that watch straps were covered by the exemption notification as parts of watches was found to be correct.

Conclusion: The watch straps were held entitled to the benefit of Notification No. 72/86-CE.

Final Conclusion: The Revenue's appeal failed and the exemption in favour of the assessee was upheld.

Ratio Decidendi: Where an accessory is an integral part of a watch, it is to be treated as part of the watch for the purpose of exemption under the relevant notification.

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