Unassembled turbine classification under Rule 2(a) turned on whether all necessary components left the factory together.

Turbine components cleared from the factory, together with bought-out parts supplied directly to the site, were examined for classification under Interpretative Rule 2(a). The Tribunal noted that treatment as turbines removed unassembled requires all necessary components to be capable of assembly from the factory clearances, and distinguished cases where the complete set of parts had been removed. Because the facts appeared similar to prior decisions but conflicted with a coordinate Bench view on the application of Rule 2(a), the Tribunal referred the classification issue to a Larger Bench without deciding the merits.

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Issues: Whether the turbine parts cleared from the factory and the remaining bought-out parts supplied directly to the site could be treated as turbines removed unassembled under Interpretative Rule 2(a) and classified under the heading for complete turbines, or whether they were merely parts classifiable as such.

Analysis: The Tribunal noted that the assessee manufactured and despatched only some of the components required for the turbine, while the remaining necessary components were supplied directly to the customer's site by suppliers. It distinguished cases where all components required for assembly had been removed from the factory and observed that, for goods to be treated as removed unassembled, the entirety of the required components must be capable of assembly from the factory clearances. The facts before it were materially similar to the line of cases where part of the equipment was supplied from outside and directly at site, creating a conflict with another view taken by a coordinate Bench on the application of Rule 2(a) and the criterion for classification.

Conclusion: The Tribunal held that the matter required examination by a Larger Bench and referred the appeals accordingly without deciding the substantive classification question.

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