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K.K. Usha, J. (President)

1. The issue that has been referred for consideration by the Larger Bench is as follow :

"Whether sub-assemblies and assemblies of photocopies would come under Item No. 9009909010 in Chapter 90 of the Import Export Policy, 1999 (reconditioned components of photocopiers)."

2. We heard both the sides.

3. Ld. Counsel for the appellants submitted that although the department had been treating the main frame of photocopier imported by the appellants as parts and components. According to him, there is no difference between components or parts or sub-assembly. The Import-Export Policy for the relevant period ITC-HS Classification, shows that import of re-conditioned components of photocopiers does not require any special licence. Therefore, according to the appellants, there is no merit in the case put forward by the Revenue.

4. Ld. DR, on the other hand, would contend that definition of the term 'component' under Clause 7(10) Chapter III of the Import Policy for the relevant period would show that parts and components of parts are different from sub-assembly. The definition of component reads as follows :-

"Component" means one of the parts of a sub-assembly of which a manufactured product is made up and into which it may be resolved. A component includes an accessory or attachment."

She further submits that for the purpose of ITC (HS) Classification, components parts are to be differently treated from 'sub-assembly'. Since there is no definition of the term 'sub-assembly' in ITC Classification, the Departmental Representative took us through meaning of the word 'sub-assembly' given in Dictionaries. In Random House Compact Unabridged Dictionary, meaning given is "a structural assembly, as of electronic or machine parts, forming part of a larger assembly". In New Webster Dictionary, meaning given is "any assembled unit which forms part of a more extensive assembly". In McGraw Hill Dictionary of Scientific and Technical Terms, "two or more components combined into a unit for convenience in assembling or servicing equipment. A structural unit, which, though manufactured separately was designed for incorporation with other parts in the final assembly of a finished product."