Real character of import controls classification of dismantled machinery; single used machine not restricted second-hand parts.

Multiple consignments declared across three bills of entry were treated as one identifiable used horizontal boring machine imported in dismantled condition, because the same invoice, shipment details and import declarations showed a single capital good rather than separate second-hand parts. The surrounding circumstances and the importer's intention were material in determining the real character of the import, and the later policy change permitting imports in parts at two customs stations did not alter that position. The import was therefore not treated as a restricted or prohibited import of second-hand parts, and the Revenue's challenge failed.

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Issues: Whether the imported goods, though cleared under three bills of entry at different customs stations, were to be treated as one complete used horizontal boring machine imported in dismantled condition, or as restricted second-hand parts requiring a specific import licence.

Analysis: The consignments were found to relate to the same invoice and the same machine, and the record showed that the three shipments, when read together, constituted one complete used horizontal boring machine. The import declarations consistently described the goods as a machine in dismantled condition, and the factual finding was that the importer intended to import a single used capital good rather than separate parts. On those facts, the later policy change permitting imports in parts at two customs stations could not govern the dispute, and the import could not be treated as a prohibited import of second-hand parts. The principle applied was that the surrounding circumstances and the importer's intention are material in determining the true nature of the import.

Conclusion: The import was held to be of a complete used capital good and not of restricted parts, so the Revenue's challenge failed.

Final Conclusion: The assessment set aside by the appellate authority was sustained, and the Revenue's appeal was rejected.

Ratio Decidendi: Where multiple consignments, taken together, constitute one identifiable machine imported and declared as such, the import must be assessed according to its real character and the importer's intention, rather than as separate restricted parts.

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