TaxTMI 
TaxTMI 
2011 (5) TMI 730
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....13-5-2003, they imported telephones in unassembled and knock-down condition. Each consignment consisted of equivalent number of elements of telephones so as to constitute a complete telephone. It stands explained to us that the parts of the telephones attracted Basic Customs Duty @ 5% whereas the complete telephone attracted Basic Excise Duty @ 15%. In view of the Circular No. 55/1995, dated 30-5-1995 and Rule 2(a) of General Rules of Interpretation, the import of component parts of telephone in SKD condition has to be classified as 'Telephone'. Accordingly, the appellant classified the goods so imported by them as telephone and filed requisite of bills of entry. The Basic Customs Duty was assessed on the consignment by treating the same as....
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....ng that they exported telephone sets consisted of base unit, receiver, cable, and coil cord. They further added that nothing more is required to constitute a telephone. User manual and warranty card were mere accessories. Testing was done to ensure that the assembly process has been correctly carried out. Imported elements when assembled would constitute a telephone. 5. The Commissioner vide his impugned order held the processes undertaken by the appellant to be manufacturing process by referring to Note 6 of Section XVI of Customs [(sic) Central] Excise Tariff Act, 1985, which includes Chapter 85 under which the telephone is classifiable. The said note reads as under : "In respect of goods covered by this section, conversion of an a....
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....India, were telephone in an un-assembled condition. The fact as to whether subsequent assembling of various parts can be equated with manufacture of telephones or not is required to be decided. For the purpose of stay, we are of the view that reliance on Section Note 6 of Section XVI is not appropriate. The same refers to conversion of incomplete or unfinished article having the essential character of complete or finished articles. In the present case, the article is already complete i.e. the telephones are already complete. It is only that various parts are in unassembled condition. It is like the clearance of the cycle from the factory to a shopkeeper in knock-down condition, where the shopkeeper assembles all parts and gives the shape o....