2002 (3) TMI 337

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....are components of photocopy machine. 2. Shri K.K. Anand, learned Advocate, submitted that the Appellants are actual users having a small scale industry registered for the manufacture/processing/assembly of electronic goods, viz. photocopy machines, audio visual, Mini security system, electronic toys; that they imported various reconditioned components of photocopies and claimed clearance of the same against special Import Licence; that imported components constitute only 60% to 70% of the total value and they require 30% local components for assembling the imported goods into full machines; that they procure about 33 items from domestic market and without these parts the machine is not functional; that locally procured parts are not....

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.... the matter had observed that the machine imported by them was incomplete machine. 3. Countering the arguments, Shri R.D. Negi, learned SDR, submitted that on examining the imported goods it was found that the Appellants had imported all the critical parts meant for photocopying machines; that 64 units comprising of the majority of the parts including essential parts with fittings and fixtures of the photocopy machine had been imported in CKD condition which had the essential character of the photocopy machines. The learned SDR relied upon the decision in the case of BHEL v. Commissioner of Customs, Madras, [1987 (28) E.L.T. 545 (T)]. He, further, submitted that for applying Rule 2(a) of the Interpretative Rules, it is not necessary....

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.... technically incomplete when imported in dis-assembled form in CKD condition as aforesaid and presented in the same manner, they obviously have the essential character of the complete photocopy machine." 5. It is thus apparent that the Appellants had not imported all the components as Commissioner observed that 24 local items were procured. In second Appeal against Order-in-Appeal No. 92/98, dated 28-4-98, the Appellants had submitted a list of 33 items which were required to be procured locally. In a similar situation in the case of B.E. Office Automation Products, where the Importers imported 75% to 80% of the parts required for manufacture of photocopier, the Tribunal treated the goods as components of the photocopier machine. Th....