TMI Blog2003 (6) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... f Engines/Transmission components and addons. She, further, mentioned that the Respondents have filed 104 Bills of Entry; that components covered under each Bill of Entry were specific numbers/sets of engines in unassembled/CKD condition; that they used to place orders for specific numbers/sets of engine which their Collaborators used to supply them in unassembled/CKD condition under the cover of one single invoice which were subsequently cleared by filing Bill of Entry; that each Bill of Entry covered specific number of petrol/diesel engine in unassembled/CKD condition. She emphasized that what was proposed to be imported by them under each Bill of Entry were not individual parts/components of engines but in fact complete diesel/petrol Engines of a particular Model Number in unassembled/CKD condition; that all the parts/components cleared against each Bill of Entry when assembled would have the essential characteristics of specific numbers of complete I.C. Engine; that the quantity of indigenous parts, used by them was insignificant and these parts were used to make the engine functional; that essential character cannot be substituted for functional character of an article/machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The corresponding Packing List and Bill of Lading also contain the similar description that is 480 sets of components of Diesel Engine..... She also mentioned that Bill of Entry No. 86, dated 19-2-99 is for the same number of 480 sets. She contended that it is thus apparent that the components required for specific number of engines were imported against invoices and the Respondents filed Bill of Entry for clearance of the components required for specific number of petrol/diesel Engines; that the Commissioner (Appeals) himself has given the finding that "Rule 2(a) would be applicable to and invocable only in cases where the unfinished or incomplete or unassembled or disassembled article is imported in a single consignment and they are presented to customs for assessment purpose at one point of time"; that the instant case is squarely covered by the said finding in the impugned order as the unassembled goods have been presented in a single consignment under a single Bill of Entry. 4.She also mentioned that the imported goods have been identified as "CKD Packs of Licensed Engines" in the 'License And Technical Assistance Agreement, (Engines Transmission) between M/s. Mitsubish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Interpretation are applicable only when the classification of the product cannot be determined in accordance with Headings or Chapter/Section Notes. Reliance has also been placed on the decision in Hindustan Packaging Co. Ltd. v. CCE, Vadodara, 1995 (75) E.L.T. 313 (T) wherein it has been held that the Rules of Interpretation can come into play and can be invoked if only the classification cannot be determined according to the terms of the Heading and any relevant Section or Chapter Notes. He also referred to the following decisions :- (i) Bharat Heavy Electricals Ltd. v. C.C., Madras - 1987 (28) E.L.T. 545 (T), (ii) H.C.L. Ltd. v. U.O.I. - 1992 (59) E.L.T. 507 (Cal.). 6.1He also mentioned that Rule 2(a) speaks of incomplete or unfinished article; that there is no reference to any other thing but article; that in the present matter, all the articles imported by the Respondents are complete in themselves and not incomplete or unfinished; that the process undertaken by them in their factory amounts to manufacture as per Section 2(f) of the Central Excise Act; that the Assistant Commissioner has admitted this fact in Para 1 of the Order-in-Original. He relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered as CTV unassembled by applying Rule 2(a) of Interpretative Rules. 8.The learned SDR, however, has taken pains to establish that the facts in the present matter are entirely different. She has emphasized that the findings of the Commissioner (Appeals), in the impugned order is factually incorrect since the Respondents has imported all the components required to give essential characteristic to specific number of engines under one Bill of Entry. The Revenue has produced two volumes containing Purchase Orders placed by the Respondents, Invoices issued by the foreign supplier, packing lists, Bills of Lading and Bills of Entry along with Annexures which show clearly that the goods imported were sets of Diesel/Petrol Engines. This is apparent from Invoices/Purchase Order referred to by the learned SDR. We also observe that Invoices are in respect of a specific number of Sets components for engine. For instance the description of goods in Invoice No. P7357, dated 8-1-99 reads as under :- "180 sets components For Petrol Engine And Transmission Against Opener's Purchase Order No. E-883, DTD. 1-12-98." The Invoices mention also the Model Number. The corresponding Bill of Entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has the essential character of the complete or finished article." The Explanatory Notes below Section XVI of H.S.N. explains the applicability of Rule 2(a) by providing that "a machine lacking only a fly wheel, a bed plate, calender rolls, tool holders, etc. is classified in the same heading as the machine, and not in any separate heading provided for parts." Thus, it is apparent that some part may not be there and procured separately. What is necessary for the application of Rule 2(a) is that article, as presented, has the essential character of the complete or finished article. This view is further strengthened by the decision of the Supreme Court in Sharp Business Machines Pvt. Ltd. v. C.C., 1990 (49) E.L.T. 640 (S.C.) wherein the importer had imported Plain Copiers in SKID/CKD condition under the cover of 3 Bills of Entry. The Supreme Court took the view that consignment covered by all the Bills of Entry assembled together should be looked into to examine whether the importer was importing an item which is totally prohibited under the Policy. In that matter also the individual items were complete and finished by themselves. We also do not agree with the contention of the Res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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