Classification of machinery supplied in parts turns on substance over form, requiring fresh examination of complete-machine treatment.

Machinery cleared in parts under orders for complete plant and machinery raised a classification issue: the Tribunal treated the substance of the transaction as relevant, not merely the form of piecemeal removal. It noted an earlier decision that parts supplied pursuant to orders for complete machinery may be assessed on that basis, subject to the stated factual safeguards. Because that precedent had not been considered by the lower authorities, the classification question was remitted for fresh examination in accordance with law, and the impugned order was set aside.

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Issues: Whether machinery cleared in parts pursuant to orders for complete machines was classifiable as complete machinery under the relevant tariff headings, and whether the matter required reconsideration in the light of the Tribunal's earlier decision.

Analysis: The dispute turned on whether the goods removed from time to time were merely parts or whether, in substance, they represented manufacture and clearance of complete machines. The Tribunal noted its earlier ruling that where parts are removed in pursuance of orders for fabrication and supply of complete plant and machinery, assessment has to be made on that basis, subject to the factual safeguards indicated in that decision. Since that precedent had not been considered by the lower authorities, the matter was considered fit for re-examination by the adjudicating authority.

Conclusion: The appeal was allowed and the impugned order was set aside, with the matter remanded for fresh consideration of the classification issue in accordance with law.

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