2018 (2) TMI 1112

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....ssee 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 Tribunal (For short, 'the Tribunal') took the view that tho....

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.... 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: Feed pipe and Steam pipe; Economizer; Super heater and Re-heater. There are many other items in the boiler ....

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....d 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 in question and not in any separate heading for parts. The same applies to an incomplete machine having the features of the complete machine (see Part IV), presented unassembled (see also ....