Conveyors supplied in consignments retain classification as complete machines; procedural lapses do not change tariff treatment.

Conveyors ordered as complete units but delivered in separate consignments for transport and installation were classifiable as complete conveyors, not as parts of conveyors. Applying Rule 2 of the Interpretative Rules and the HSN Explanatory Note, goods in unassembled form or an incomplete machine with the character of a complete machine take the classification of the finished machine itself. Mere failure to follow prescribed procedural instructions did not alter the tariff classification. The Revenue's demand for differential duty was therefore not sustainable.

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Issues: Whether conveyors cleared in different consignments as part shipments were liable to be classified and assessed as complete conveyors or as parts of conveyors; and whether failure to follow the prescribed procedure could alter the classification.

Analysis: The orders placed by customers were for complete conveyors, and the goods were supplied in different consignments only for convenience of transportation and installation. Under Rule 2 of the Interpretative Rules and the HSN Explanatory Note, goods transported in an unassembled state, or an incomplete machine having the character of a complete machine, are to be classified as the machine itself and not as separate parts. The Tribunal also noted the supporting departmental circular and earlier decision relied upon, and held that mere non-observance of the prescribed procedural instructions could not change the classification of the goods.

Conclusion: The goods were classifiable as conveyors and not as parts of conveyors, and the Revenue's demand for differential duty was not sustainable.

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