TMI Blog2009 (3) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... s against CSH 8402.10 adopted by them and to demand differential duty of Rs. 39,10,79,512/-, the original authority confirmed the proposals. The Commissioner (Appeals) reduced the demand to Rs. 35,32,83,006/- while upholding the order of the original authority otherwise. Vide Final Order No. 628/01 dated 4-5-2001 the Tribunal remanded the matter for de novo decision on the grounds that the assessment was provisional and therefore the demand of differential duty was improper; the expert opinion given by BHEL could not be ignored in the absence of another equally respectable opinion. The impugned order was passed following remand direction of the Tribunal as per the final order mentioned above. 2. An expert opinion was obtained by the Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsported in one lorry and was normally transported in several consignments. This was the industry practice owing to the physical feasibility. However the supply was against order for a full boiler and no components in excess of what could constitute a boiler was cleared and transported. Accordingly, he held that the impugned clearances involved boiler in unassembled condition classifiable under CSH 8402.10 and dropped the demand the proposal to Rs. 39,10,79,512/-. 3. The Revenue is in appeal against the above order. The following grounds are taken in the appeal. Boilers emerged only at site on assembly, erection etc. along with components received from other units of BHEL, imports and those sourced through vendors of BHEL. A functional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -objection filed by BHEL, the respondent relied on, inter alia, the decision of the Tribunal in CCE, Pune v. Thermax Bobcock Wilcox Ltd. [2005 (182) E.L.T. 336 (Tri.-Mumbai)] and CCE, Coimbatore v. Servall Engineering Industries [2004 (168) E.L.T. 125 (Tri.-Chennai)] and the HSN notes. 5. We have carefully considered the facts of the case and the rival submissions. On a perusal of the expert opinion obtained by the Department from the Technical Adviser (Boilers) of the Ministry of Commerce and Industry, a boiler came into existence on manufacture, erection of : (i) Drum (ii) Fittings like: Feed pipe and steam pipe Economiser; Super heater and Re-heater (iii) Mounting like valves. The Commissioner found that in te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng. The above note is an authority to classify a complete machine or a machine which has acquired the essential characteristics of a machine under the heading appropriate to the complete machine when cleared in unassembled form in different consignments for convenience of transportation. We find that the Commissioner has decided the classification of the impugned goods as a boiler of CSH 8402.10 in accordance with the statutory provisions. 6. We also find that in the Thermax Babcock Wilcox Ltd. (supra) case which dealt with an identical dispute, the Tribunal held as follows : But we still hold that this variance in opinions expressed, does not alter the fact that the parts of boilers as cleared by the respondents, do constitute an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured by it and those sourced from the market. The Tribunal observed that component parts manufactured and cleared from the appellant s factory could not be equated with the clearance of full furnace in knocked down condition. We find that this ratio obviously does not apply to the facts of the subject case. As regards the Spaceage Engineering Projects Ltd. case (supra), the appellants had cleared some components which constituted parts of the conveyor system, stackers/reclaimers. Only when those parts were assembled and erected at the site of the customer along with bought out items and were interconnected with the transmission devices like conveyor belt, the whole assembled/erected machinery became conveyor system. The facts of this c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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