Telephone exchange parts imported separately could not be treated as a complete machine for classification under Heading 85.13.

Components of a telephone exchange imported in ten separate consignments could not be aggregated and classified as a complete telephone exchange under Heading 85.13. Classification had to be made on the basis of each consignment as presented for assessment, and there was no legal basis to treat earlier and later imports together as one complete machine. The tariff scheme and Section XVI notes required the goods to be classified according to the applicable heading for parts, and the claimed project-import or exemption treatment was not established on the facts. The lower appellate classification was set aside and the Revenue's appeal succeeded.

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Issues: Whether components of a telephone exchange imported in ten separate consignments could be classified and assessed as a complete telephone exchange under Heading 85.13.

Analysis: The goods were imported in separate consignments and no single consignment contained a complete telephone exchange. The assessment had to be made on the basis of each import as presented for assessment, and there was no legal basis to aggregate earlier consignments for treating the later imports as a complete machine. The tariff scheme and Section XVI notes required parts to be classified according to the applicable heading, and the exemption or project-import treatment claimed was not established on the facts.

Conclusion: The components imported separately could not be classified as a complete telephone exchange under Heading 85.13. The classification adopted by the lower appellate authority was set aside and the appeal was allowed in favour of Revenue.

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