2018 (2) TMI 1112

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts/parts of a boiler cleared by the assessee would attract duty under sub-heading 8402.10 of the first schedule of Central Excise Tariff Act, 1985 (For short, 'the Tariff Act') or sub-heading 8402.90 of the said schedule. The relevant entries of the Tariff Act are as follows : Heading No. Sub Heading No. Description of goods Rate of duty 84.02   Steam or other vapour generating boilers (other than central heating hot water boilers capable also of producing low pressure steam); super-heated water boilers     8402.10 All goods other than parts 10%   8402.90 Parts 15%   3. Both, the adjudicating authority and the Customs, Excise and Service Tax Appellate Tri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly consists of tube bundles whole sole purpose is to heat the steam further to increase its efficiency. To monitor the system more effectively, various instruments are used to measure various parameters like pressure, temperature, flow of the media in various sections of the boiler. Control Systems are used to ensure that these parameters are within the limits for safe operation. Components like E.S.P. Fans, Control Equipment constitutes auxiliary/ accessories of Boiler and are not essential constitutes of Boiler, Even without these, a complete boiler will come into existence. It is thus clear that Boiler will come into existence on manufacture erection of the following: i) Drum ii) Fittings like....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d (ii) the parts which are used in boilers but not essential as explained above." 5. That apart, relying on the HSN note Part V under Section XVI, as extracted below, the aforesaid two authorities concluded that such components which are essential to classify the boiler as a machine, even if transported as components, must be understood to have been transported as a complete machine. Therefore, levy of duty should be under sub-heading 8402.10 and not sub-heading 8402.90 as claimed by the Revenue. HSN note Part V under Section XVI : "For convenience of transport many machines and apparatus are transported in an unassembled state. Although in effect the goods are then a collection of parts, they are classified as being the machine....