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"13.Therefore, it is clear that mobile phone and battery charger are sold as a single retail pack and the essential character of the package is that of a mobile phone/telephone set. On application of Rule 3 (a) of General Rule of Interpretation of Import Tariff, it is clear that the entry of telephone set is more specific than the residuary entry and the goods would thus be classified as telephone sets under Rule 3 (a). Even assuming that the classification cannot be done under Rule 3 (a), even under Rule 3 (b), the composite box put up in sets for retail sale are to be classified as if they consisted of the material or component which gives them their essential character i.e the telephone set. The Hon'ble Supreme Court in Kemrock Industries V. CCE Vadodara, 2007 (210) ELT 497 (SC), held that the composite box is to be classified as "telephone set" and the appellant has correctly paid the tax under the Act and no further demands can be made from them. Thus, by this reasoning the composite goods or goods put up in sets for retail sale of the mobile phone and battery charger can only fall in the classification of the cell phone.

(a) The judgment has been rendered in context of Punjab VAT Act. The entry in the Schedule under the Act reads differently and, as such, provisions are different.

(b) The case has been decided on facts of another assessee i.e. Nokia India Pvt. Ltd. And cannot be applied to facts of petitioner which are distinct. Nokia had admitted in its reply to notices and as also before Tribunal in State of Punjab that battery charger is an accessory. It is submitted that it is not case of petitioner that battery charger is an accessory and, as such, Nokia judgment does not apply.

"9. The learned counsel appearing on behalf of the respondent demonstrated the composite package of cellphone, cellphone and battery charger and some other accessories like headphone. The contention of the respondent had been that battery charger not being independently sold, was sold with the cellphone in same packing and hence tax chargeable was @ 4% and proper tax had been paid and, therefore, there was no good ground to charge tax @ 12.5% on sale of those battery chargers which are free with the cellphone in the composite package.

10. On the other hand, according to the counsel for the appellant State a battery charger is not a part of the cellphone but merely an accessory thereof even as per the respondents themselves, who had separately paid tax @ 12.5% on the battery chargers sold separately. According to him, the battery chargers are not covered under Entry 60(6)(g) of Schedule B of the Act and was thus liable to be taxed @ 12.5% on its value under Schedule F of the Act which covers all residuary items not falling in any of the classifications of the other Schedules of the Act.