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Classification of imported goods as a complete system or separate parts for assessment and duty calculation under relevant tariff headings. Detailed Analysis: The appeal was against the order of the Collector of Customs (Appeals), Bombay, regarding the classification of imported goods claimed to be a complete CLU Process Plant for Steam Blasting. The Assistant Collector held that the imported items were parts comprising Mas Mixing Station, Control Pulpit, Central Control Unit, and connections, with separate values indicated in the invoice. The entire machine was not valued as a system, leading to duty assessment under appropriate tariff headings for parts. The request for refund was rejected, and the original assessment was upheld by the Collector (Appeals), prompting the appeal. The appellants argued that what they imported was a complete system that had to be disassembled for importation, as the entire machine could not be imported as one unit. They contended that all parts were assembled in their factory to form a complete system. They emphasized that, based on rules of interpretation and section notes, the machine should be assessed as one unit and not as individual parts. The Learned DR opposed this argument, stating that while classification could consider the machine as a whole, it could not be used for the benefit of exemption Notification No. 59/87-Cus. Referring to relevant cases, the DR highlighted that accessories and spare parts accompanying the machine should be assessed under appropriate headings. The DR also cited a Supreme Court decision regarding the assessment of similar goods under Chapter 90. The Tribunal noted that the authorities below based their decision on the goods being supplied as separate parts with distinct values. However, they failed to determine whether the imported goods, when assembled, would form a complete system as claimed. The Tribunal referenced a previous case to support the classification of a machine that needs to be disassembled for transport under the heading appropriate to the whole machine. The Tribunal emphasized that while parts could be assessed as a machine for classification purposes, the benefit of exemption would not automatically apply. As the goods presented for assessment were separate parts that would form a machine only when assembled, the Tribunal remanded the case to the original adjudicating authority for a fresh decision. The appellants were granted the opportunity to present additional evidence to support their case during the new assessment.
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