Classification of boiler parts as unassembled boiler upheld where essential components were supplied separately for transport convenience.

Boiler parts cleared in separate consignments were treated as a boiler in unassembled form, not as mere parts, because the supplies comprised the essential components of the complete boiler and were sent separately only for transport convenience. The Explanatory Notes to Section XVI support classification of an incomplete or unassembled machine under the heading for the complete machine when it retains the essential character of that machine. Contrary precedents were distinguished on facts, while similar classification had already been accepted in an identical dispute. On that basis, the goods were classified under Heading 8402.10 and the duty demand was dropped.

---

---

Issues: Whether the boiler parts cleared by the assessee were classifiable as a boiler in unassembled form under Heading 8402.10 or as parts under Heading 8402.90.

Analysis: The Department's expert opinion identified the principal components required for a boiler, and the clearances were found to comprise those essential components supplied against orders for boilers. The goods were cleared in separate consignments only because of the size and transport constraints of the boiler, and not as excess or unrelated parts. The Explanatory Notes to Section XVI support classification of a machine cleared unassembled, or an incomplete machine having the essential characteristics of the complete machine, under the heading applicable to the complete machine when the clearance is for convenience of transport. The relied-upon contrary precedents were distinguished on facts, and the identical dispute in Thermax Babcock & Wilcox Ltd. had already been decided in favour of similar classification.

Conclusion: The clearances were correctly classified as a boiler in unassembled condition under Heading 8402.10, and the demand was rightly dropped.

Final Conclusion: The Revenue's challenge failed, and the order in favour of the assessee was sustained.

Ratio Decidendi: A machine cleared in separate consignments for convenience of transport, but comprising its essential components and having the characteristics of the complete machine, is classifiable under the heading applicable to the complete machine rather than as mere parts.

---