TaxTMI 
TaxTMI 
2023 (11) TMI 176
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....treated as accessories. He pointed out that the revenue relied on the decision of the Apex Court in the case of Insulation Electrical (P) Ltd - 2008 (224) ELT 512 (SC) according to revenue the said decision holds that the part of a machinery is an essential component of the accessories without which the same cannot function whereas accessories/ machinery is something complementary or subordinate in nature and need not to be essential for the actual functioning of the product. 2.1 The appellant had declared the imported items as accessories whereas the revenue sought to classify the same as surgical tools and all consumable in the nature. The Revenue held that these items cannot be treated as accessories in terms of the decision of Hon'ble Apex Court cited above. The revenue was of the view that these devices are used for the positioning of the patient for radio therapy procedure and are of the nature of supporting medical device. Therefore, they cannot be called as parts/ accessories of the medical device and therefore, the exemption available to parts/ accessories would not be available to these goods. 2.2 The issue regarding accessories has been examined by the Larger Bench of ....
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....r 9022 all goods which are used along with the said machine are to be classified under heading 9022 and not under heading 9018 or 9608. He further argued that benefit of CVD under Notification No 12/2012- CE cannot be denied. Reliance has been placed on the explanatory note in respect of parts and accessories under the Chapter heading 9018 and 9022 which reads as follows:- "90.18 Parts and Accessories Subject to the provisions of Notes 1 and 2 to this chapter (see the General Explanatory Notes), parts and accessories of apparatus or appliances of this heading remain classified here. 90.22 Parts and Accessories Subject to the provisions of Notes 1 and 2 to this chapter (see the General Explanatory Note), parts and accessories identified as being solely or principally for use with X-ray apparatus etc. are also classified in this heading." 2.6 The appeal affirms that the goods are used solely with the radio therapy machine, the goods have to be classified under 9022 in terms of aforesaid explanatory notes of chapter heading 9022. 3. Learned AR relies on the impugned order. He relied on the decision of Hon'ble Apex Court in the case of Insulation Electrical (P) Ltd - 2008....
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....ed and other porous-tipped pens and markers, Fountain pens, stylograph pens amnd other pens, duplicating stylos, propelling or sliding pencils, pen holders, pencil holders and similar holders, parts (including caps and clips) of the foregoing articles, other than those of heading 96.09. 4.2 On perusal of the classification 9022 clearly shows that apparatus used for X-ray or radio therapy would be covered under heading 9022. The heading 9018 is general heading covering instruments and appliances used for in medical, surgical, dental or veterinary science. The HSN explanatory note to Chapter heading 9018 and 9022 reads as follows- "90.18 Parts and Accessories Subject to the provisions of Notes 1 and 2 to this chapter (see the General Explanatory Notes), parts and accessories of apparatus or appliances of this heading remain classified here. 90.22 Parts and Accessories Subject to the provisions of Notes 1 and 2 to this chapter (see the General Explanatory Note), parts and accessories identified as being solely or principally for use with X-ray apparatus etc. are also classified in this heading." 4.3 Chapter note 2 (b) to Chapter 90 reads as below:- "2. Subject to Note ....
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....ever, later on, only invoicing pattern was changed for some goods wherein the assessee received purchase orders directly from M/s. Maruti Udyog Limited but invoices were raised to M/s. Krishna Maruti Udyog Limited and M/s. Bharat Seats Limited just for the sake of convenience and economy. The payment for the same was received directly from M/s. Maruti Udyog Limited. Merely supplying the material through M/s. Bharat Seats Limited and M/s. Krishna Maruti Limited which are manufacturing seats classifiable under chapter heading 9401.00 does not lead to the conclusion that the products in question fall under chapter heading 9401.00. 16. In Mehra Brothers (supra), this court observed in Para 6 as follows : "6. In Supreme Motors v. State of Karnataka case (supra), the Karnataka High Court has taken different view. It held that the car seat covers, at best could make the seat more comfortable, but do not serve as aids to the vehicle as a whole, and therefore, they must fall outside the ambit of Entry 73 of the Second Schedule to the Karnataka Sales Tax Act, 1957 and was not exigible to sales tax at 13 per cent. Undoubtedly this ratio would help the appellant. The learned judges ....
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.... the motor car for adjustment of the seats for the convenience and comfort of the passengers. The Rail Assembly front seat (Omni), Adjuster/assembly slider seat, YE-2 rear back lock assembly and 1000 cc rear back lock assembly being manufactured by the assessee can at best be termed as accessories to the motor vehicle for better convenience of the passengers/drivers travelling in the car." 4.5 The appellant have relied on the decision of the larger bench of Tribunal in the case of Banco Products India Ltd (Supra). In the said decision following has been observed: - "12. At this stage, we may also take note of Tribunal's decision in case of Collector of Customs v. M/s. Jolly Exports (P) Ltd. - 1990 (45) E.L.T. 612 (T), wherein the term "accessory" was considered in the light of the definition appearing in various dictionaries. For ease of reference, we reproduce the relevant portion of the said judgment : "The term 'Accessory' has been defined in McGraw Hill Dictionary of Scientific and Technical Terms as follows : "Accessory (Mech Eng): A part, sub-assembly, or assembly that contributes to the effectiveness of a piece of equipment without changing its basic function; may ....
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....edit as capital goods. For holding so, the Hon'ble High Court referred to the decision of the Hon'ble High Court of Allahabad in case of Sales Tax Commissioner v. Shri Laxman Singh - 1972 (30) STC 372, laying down that the articles like oil-can or steel file may not be adjuncts but certainly they are accompaniments of a chaff-cutter. They contribute in a subordinate degree to a general result or effect of a chaff-cutter. Without them, a chaff-cutter cannot work efficiently for a long time. Oilcans and steel files are accessories of chaff-cutter and their turnover is exempt from tax. 14. Reference to all the above decisions was necessary to understand the scope of the term "accessory". If the plastic crates are held to be an accessory to the main machine, appearing against Sr. No. (i) of the definition of the capital goods, as contained in Rule 2(b) of the Cenvat Credit Rules, 2002, they would earn the status of the eligible capital goods for the purposes of Modvat. The appreciation of the various judgments on expression "accessory" as discussed above, leads us to observe that an accessory may or may not be required for essential working of the main unit, but is an object which i....