Accessory value excluded from assessable value where the item is not an integral part of the excisable main product.

The valuation issue concerned whether the value of a speaker cleared together with an audio deck formed part of the deck's assessable value. The Tribunal applied the Supreme Court principle that an item is excluded where it is only an accessory, even if fitted at clearance and necessary for effective use, unless it is an integral part of the excisable main product. Since the addition was based only on effective use and common clearance, and not on the speaker being integral to the audio deck, inclusion of the speaker's value was not justified.

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Issues: Whether the value of the speaker was includible in the assessable value of the audio deck when both were cleared together.

Analysis: The valuation dispute turned on whether the speaker was a component of the audio deck or only an accessory. The Tribunal applied the Supreme Court's approach that items which are merely accessories, even if fitted at the time of clearance and essential for effective use, do not become part of the excisable main product unless they are an integral part of it. As the authorities had added the value only on the ground of effective use and packaging together, the inclusion was not justified.

Conclusion: The value of the speaker was not includible in the assessable value of the audio deck, and the assessee succeeded.

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