Accessories valuation under trade supply rule failed where compulsory supply was not proved; refund rejection sustained.

Rule 2 of the Accessories (Condition) Rules, 1963 applies only where the proper officer is satisfied that, in the ordinary course of trade, the accessories are compulsorily supplied with the article and no separate charge is made because their price is included in the article's price. Although the invoice showed the accessories' price as included in the machine price, there was no material to prove compulsory supply in the ordinary course of trade. On that basis, assessment of the imported accessories at the same rate as the machines was not warranted, and the refund claim was rightly rejected with the lower authorities' assessment sustained.

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Issues: Whether imported accessories were liable to be assessed at the same rate of duty as the machines under Rule 2 of the Accessories (Condition) Rules, 1963, and whether the refund claim was maintainable.

Analysis: Rule 2 applies only where the proper officer is satisfied that, in the ordinary course of trade, the accessories are compulsorily supplied along with the article and no separate charge is made, their price being included in the article's price. Although the invoice indicated that the accessories' price was included in the machines' price, there was no material to show that the accessories were compulsorily supplied in the ordinary course of trade. In the absence of such proof, the claim for assessment at the machine rate could not succeed.

Conclusion: The refund claim was rightly rejected and the assessment made by the lower authorities was sustained.

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