1998 (8) TMI 246 - AT - Customs

Zoom lens for SLR cameras classified as essential part, not accessory under ITC policy

COMMISSIONER OF CUS., CHENNAI Versus AGARWAL DISTRIBUTORS (P) LIMITED

The Tribunal rejected the Revenue's contention and classified the zoom lens for SLR cameras as an essential part rather than an accessory under the ITC ... Reference to High Court - Import Issues:1. Classification of zoom lens as an accessory or essential part of a SLR camera under ITC policy.Analysis:The judgment revolves around determining whether a zoom lens is an accessory or an essential part of a Single Lens Reflex (SLR) camera as per the ITC policy. The Revenue contended that the zoom lens enhances the efficiency of the camera, making it an accessory subject to restrictions. On the other hand, the Appellant argued that the zoom lens is essential for the basic functioning of the camera, likening it to an objective lens under the Open General License (OGL) for free import. The Tribunal analyzed the ITC (HS) policy, specifically Chapter 90, Heading 90.02, which distinguishes between objective lenses (free import) and accessories of consumer durables (restricted import).The Tribunal considered the main test to be whether the zoom lens is necessary for the complete functioning of the camera. It was noted that only one lens can be attached to the camera at a time, and the camera requires a specific lens to capture different types of images effectively. The judgment highlighted that without the zoom lens, the camera cannot function adequately for distant object photography, emphasizing its essential role akin to a tool rather than an accessory. Drawing parallels to a previous case involving extrusion punches, the Tribunal concluded that the zoom lens, like the punches, is indispensable for the camera's primary function, making it a necessary tool.Based on the arguments presented and the examination of relevant provisions and precedents, the Tribunal rejected the reference application by the Revenue. It was established that the zoom lens, being integral to the camera's core functionality, should be classified as an essential part rather than a mere accessory. Consequently, the import of zoom lenses for SLR cameras falls under the purview of free import under OGL, aligning with the classification of objective lenses for cameras. The judgment provided a comprehensive analysis of the distinction between accessories and essential components within the regulatory framework, ensuring clarity on the classification of zoom lenses for SLR cameras under the ITC policy.