Essential character test keeps knocked-down cement machinery classified as complete machinery, not mere parts and components.

Cement making machinery supplied under a contract for complete machinery remains classifiable as complete machinery even if dispatched in knocked-down, unassembled, or staggered consignments. The decisive test is the essential character of the goods as cleared from the factory: separate packing or dispatch in parts does not convert a complete machinery supply into a supply of mere parts and components. On that reasoning, the view that the goods were only parts was rejected and the complete machinery classification was upheld.

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Issues: Whether cement making machinery cleared in knocked down condition under a contract for supply of complete machinery was classifiable as complete machinery or merely as parts and components.

Analysis: The contract was for supply of the complete cement making machinery, and the machinery was dispatched in one or more consignments due to practical constraints. The decisive consideration was the character of the goods as cleared from the factory: if the parts sent together had the essential character of complete machinery in unassembled or disassembled condition, they could not be treated merely as parts. Mere separate packing or staggered dispatch did not alter the classification where the supply obligation was for the whole machinery. On that basis, the reasoning that the goods were only parts was not accepted.

Conclusion: The goods were correctly classifiable as complete cement making machinery and not as parts and components; the Revenue's appeal failed.

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