Classification of imported components as finished goods can trigger higher duty, show cause notices, and value re examination. Where imported parts, though disassembled, possess the essential characteristics of the finished article when assembled, they must be classified as the finished article; absent demonstrable indigenisation of major components, Central Excise should issue show cause notices to the Commissioner of Customs of the port of import, forward copies to the concerned Customs House, re examine assessable value for Central Excise, and report detected cases to the Board with intimation to the Director General (Anti Evasion).
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Classification of imported components as finished goods can trigger higher duty, show cause notices, and value re examination.
Where imported parts, though disassembled, possess the essential characteristics of the finished article when assembled, they must be classified as the finished article; absent demonstrable indigenisation of major components, Central Excise should issue show cause notices to the Commissioner of Customs of the port of import, forward copies to the concerned Customs House, re examine assessable value for Central Excise, and report detected cases to the Board with intimation to the Director General (Anti Evasion).
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