Complete crane clearance remains complete goods even when shipped in disassembled form for excise purposes

Documentary evidence showed that the contracts, purchase orders, price lists, gate passes and RG-1 entries related to the design, manufacture and supply of complete cranes. Although the cranes were moved from the factory in unassembled or disassembled condition because of their bulk, the records read with the buyers' orders showed staged clearance of parts of the same crane and not independent clearance of separate parts. The clearing was therefore treated as clearance of complete cranes for excise purposes, and the contrary view was held unsustainable.

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Issues: Whether the goods cleared by the assessee were complete cranes or merely parts of cranes for excise purposes.

Analysis: The clearance documents, purchase orders, price-lists, gate passes and RG-1 entries showed that the contracts were for design, manufacture and supply of complete cranes, though the goods were moved from the factory in unassembled or disassembled condition because of their bulky nature. The descriptions in the records, read with the buyers' orders, indicated that the consignments represented parts of the same crane supplied in stages and not independent parts cleared as such.

Conclusion: The assessee had cleared complete cranes and not parts of cranes; the contrary finding in the impugned order was unsustainable.

Ratio Decidendi: Where documentary evidence shows that bulky machinery is manufactured and cleared pursuant to a contract for a complete machine, removal in disassembled or part-consignment form does not alter the character of the clearance as that of the complete goods.

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