Classification of segmented machinery as complete machines upheld where essential character was retained despite unassembled clearance.

Rolling mills and galvanising lines cleared from the factory in segments for transport and installation retained the essential character of complete machinery. Rule 2(a) treats incomplete or unassembled articles as the complete article where they have that essential character, and Note 4 to Section XVI supports classification of components that function together under the relevant machine heading. Because the machinery's size, weight and construction made single-piece removal impracticable, segmented contractual supply did not convert it into mere parts for excise purposes. The goods were therefore classifiable as complete machines rather than parts, and the higher duty demand was unsustainable.

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Issues: Whether rolling mills and galvanising lines, cleared from the factory in segments for transport and installation, were classifiable as complete machines or as parts under the Central Excise Tariff.

Analysis: Rule 2(a) treats an article as including an incomplete or unfinished article having the essential character of the complete or finished article, and also covers complete or finished articles removed unassembled or disassembled. Note 4 to Section XVI supports classification of a machine made up of separate components that function together under the heading appropriate to that function. The size, weight, and construction of the machinery made removal in one piece impracticable, and the contractual supply of the complete machine in segments did not alter its essential character. The goods were therefore to be viewed as the machine as a whole and not as isolated parts merely because they were cleared piece-meal.

Conclusion: The goods were classifiable as rolling mills and galvanising lines, not as parts, and the demand on the higher duty rate was unsustainable.

Final Conclusion: The appeal succeeded and the impugned classification and duty demand were set aside on the footing that segmented clearance of the contracted machinery did not convert the complete machine into parts for excise purposes.

Ratio Decidendi: Where machinery supplied under contract is cleared in unassembled or segmented form but retains the essential character of the complete machine, it is classifiable as the complete machine rather than as parts.

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