Classification of disassembled television sets under the Central Excise Tariff turned on essential character and Rule 2(a).

Goods manufactured, matched, numbered, assembled, tested and found complete as television sets retained their character as television receivers even after being disassembled for transport. Classification under the Central Excise Tariff had to be determined by the tariff headings and Section and Chapter Notes, but Rule 2(a) applied because the goods were presented unassembled or disassembled and possessed the essential character of the finished article. Section Note 2 to Section XVI did not displace that result on these facts. The goods were therefore classifiable under Tariff Entry 8528 as television receivers, not under Tariff Entry 8529 as parts.

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Issues: Whether the goods manufactured and transported in disassembled form were classifiable as television receivers under Tariff Entry 8528 or as parts of television receivers under Tariff Entry 8529, and whether Rule 2(a) of the Rules for the Interpretation of the Schedule to the Central Excise Tariff Act, 1985 was displaced by Section Note 2 to Section XVI.

Analysis: Classification under the Central Excise Tariff must first be tested against the tariff headings and the relevant Section and Chapter Notes. Section Note 2 to Section XVI gives primacy to parts that are goods included in the relevant headings, but on the facts the goods were not mere unidentified parts in bulk. The parts were matched, numbered, assembled, tested, and found to be complete television sets before being disassembled and sent to satellite units. Their subsequent disassembly did not alter their character, and the goods remained identifiable television receivers. In that situation, Rule 2(a) applied because the goods were presented unassembled or disassembled and retained the essential character of the finished article.

Conclusion: The goods were correctly classified as television receivers under Tariff Entry 8528 and not as parts under Tariff Entry 8529; the challenge to the classification failed.

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