Essential character in tariff classification governs CKD car packs, while exemption benefits depend on strict compliance with notification terms.

Rule 2(a) of the General Rules of Interpretation applies to unassembled or knocked-down goods that retain the essential character of the complete article, so passenger car CKD packs are classifiable as motor cars for tariff purposes. Exemption notifications must be applied strictly according to their text and prescribed conditions. Notification No. 29/83 may extend to CKD packs, but only on proof of the required certificates and compliance before the adjudicating authority. Notification No. 72/93, which covered components and parts falling within Chapter 87, did not extend to CKD packs treated as cars for tariff classification, and its conditions could not be relaxed or cured by fresh material at the appellate stage.

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Issues: (i) Whether passenger car CKD packs imported as unassembled goods were classifiable as motor cars under the tariff by applying the rule of essential character. (ii) Whether the exemption notifications claimed by the importers were available, and whether the stipulated documentary conditions had to be strictly fulfilled.

Issue (i): Whether passenger car CKD packs imported as unassembled goods were classifiable as motor cars under the tariff by applying the rule of essential character.

Analysis: Rule 2(a) of the General Rules of Interpretation applies to incomplete, unfinished, unassembled, or disassembled articles which, as presented, have the essential character of the complete article. The imported CKD packs consisted of complete cars in knocked down form and therefore answered the description of motor cars for tariff purposes.

Conclusion: The CKD packs were classifiable as motor cars under the tariff.

Issue (ii): Whether the exemption notifications claimed by the importers were available, and whether the stipulated documentary conditions had to be strictly fulfilled.

Analysis: An exemption notification must be construed according to its own language, and its benefit can be claimed only on compliance with the conditions expressly prescribed. Notification No. 29/83 expressly covered components including CKD packs, so its benefit could extend to such imports, but only if the required certificates and conditions were proved before the adjudicating authority. Notification No. 72/93, on the other hand, exempted components and parts falling within Chapter 87, and its wording did not extend to CKD packs classified as cars for tariff purposes. The conditions in the notification could not be relaxed, and no new material could be produced at the appellate stage to cure the deficiency.

Conclusion: Notification No. 29/83 was remitted for reconsideration on the issue of compliance with conditions, while Notification No. 72/93 was not available to the importer.

Final Conclusion: The imported CKD packs were held to be cars for classification purposes, the claim under Notification No. 72/93 failed, and the claim under Notification No. 29/83 was left to be decided afresh on proof of the prescribed certificates.

Ratio Decidendi: Goods imported in CKD form having the essential character of a complete motor vehicle are classifiable as that complete vehicle under the tariff, and an exemption notification tied to tariff classification is governed by its text and must be satisfied strictly according to its prescribed conditions.

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