CKD and SKD classification: identifiable machinery is assessed as the machine itself, not as parts

Identifiable machinery cleared in CKD or SKD condition remains classifiable as the machine itself and not as mere parts, because unassembled removal for convenience does not change the substantive identity of the goods. Material handling equipment cleared in knocked-down form was therefore classifiable under sub-heading 8428.00 and not under heading 8431.00. On that basis, the confirmed duty, interest and penalty were unsustainable.

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Issues: Whether material handling equipment cleared in CKD/SKD condition was classifiable as complete machinery under sub-heading 8428.00 or as parts under heading 8431.00.

Analysis: The clearance of the equipment in knocked-down or semi-knocked-down condition did not convert the goods into mere parts where the assembled product was identifiable as material handling equipment. A separate heading for parts could not override the substantive classification of machines transported in unassembled form for convenience. The earlier Tribunal decisions relied upon recognised that such clearances are assessable as machinery and not as parts.

Conclusion: The goods were classifiable as material handling equipment under sub-heading 8428.00 and not as parts under heading 8431.00. The confirmed duty, interest, and penalty were unsustainable.

Ratio Decidendi: Where identifiable machinery is cleared in CKD or SKD condition, classification must be as the machine itself and not as parts merely because the goods are unassembled at the time of removal.

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