Minor post-import machining did not change essential character, so imported stubs qualified as boiler parts for concessional duty.

Imported forged stubs requiring only minor machining before fitting in boiler assembly retained their character as parts, because classification generally turns on the condition at import and limited post-importation work that does not alter essential character may be ignored. As the goods were imported as hollow steel cylinders, intended for and used in boiler manufacture, and the alteration was only to enable fitting, they qualified as parts under the notification and attracted the concessional duty benefit.

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Issues: Whether imported forged stubs, requiring minor machining before use in boiler assembly, qualified as "parts" for the concessional duty benefit under Notification No. 350-Cus., dated 2-8-1976.

Analysis: The notification extended concessional duty to parts required for initial setting up or for assembly or manufacture of articles falling under the listed tariff headings, including boilers. The goods were imported as hollow steel cylinders and were intended for, and actually used in, the manufacture of boilers. The only dispute was whether the post-importation machining required to fit them as boiler components altered their essential character. The Tribunal held that classification must ordinarily proceed on the condition at importation, but minor post-importation processes such as machining, when necessary only to enable fitting and not to change the essential character of the goods, could be ignored. Having regard to the special alloy composition, intended use, invoice description, and the limited nature of the alteration, the goods retained their character as parts.

Conclusion: The imported stubs were parts within the meaning of the notification and were entitled to the concessional duty benefit.

Ratio Decidendi: Minor post-importation machining that does not alter the essential character of imported goods may be ignored in determining whether they are "parts" for a duty exemption notification, if the goods are intended for and used in the manufacture or assembly of the specified article.

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