Accessory valuation for D.G. sets turns on compulsory supply and composite pricing under the assessment rules.

Spare parts and accessories imported with D.G. sets were treated as eligible for the same duty assessment where they were specially designed for the machines, not of general market use, and were recommended for import to ensure smooth operation. The supplier's letter and invoice supported the finding that the parts were compulsorily supplied and that their cost formed part of a composite price for the D.G. sets, even though a separate breakup was shown. On that basis, the condition under the Accessory (Condition) Rules, 1963 was satisfied, and the benefit of the same assessment treatment applied to the accessories and parts.

---

---

Issues: Whether spare parts and accessories imported along with the D.G. sets were entitled to assessment at the same rate of duty as the D.G. sets under the Accessory (Condition) Rules, 1963, on the footing that they were compulsorily supplied and that no separate charge was made for them.

Analysis: The supplier's letter stated that the spare parts and accessories were specially designed and tailor-made for the imported D.G. sets, were not of general use, were not available in the open market, and were recommended for import along with the machine for smooth operation. The letter also indicated that no responsibility would be accepted if the D.G. sets were operated with indigenous spares, which supported an inference of compulsion in the arrangement. The invoice further reflected a composite price for the D.G. sets and the spares, with a separate breakup only to show the components of that composite consideration. On this material, the condition that the accessories and parts were compulsorily supplied and that their price was included in the price of the articles was satisfied.

Conclusion: The spare parts and accessories qualified for the same assessment treatment as the D.G. sets, and the denial of the benefit was unsustainable.

---