Case Law Details
In re HP India Sales Pvt. Ltd. (CAAR Delhi)
The moot question is as to whether or not, the items, i.e printers in question, in absence of formatter board and firmware have the essential character of a printer. To arrive at the conclusion, I intend to refer to a few judgments. In the case of Jaypee Forges v. Collector of Central Excise, Bombay reported vide 1996 (83) E.L.T. 49 (Tribunal), it is observed that the factors, which determine the essential character will vary as between different kinds of goods and may be determined not only by the nature of the material used but as well by the use to which the goods are intended. Further, the Hon’ble Orissa High Court held in State of Orissa v. Gestetnet Duplicators (P) Ltd.-(1974) 33 S.T.C. 353 that it is a matter of common experience that the identity of an article is associated with its primary function; it is only logical that it should be so; when a consumer buys an article, he buys it because it performs a specific function for him; there is a mental association in the mind of the consumer between the article and the need it supplies in his life; it is the functional character of the article which identifies it in his mind.
In light of the facts and foregoing discussion, I am of the view that the printers proposed to be imported without the formatter boards and firmware possess the essential character of a complete printer though they may not be functional at the time of import.
Accordingly,
– Item, HP 136 and HP 438 are correctly classifiable under Sub heading 8443 31 00 of the Customs Tariff.
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