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TMI Blog1987 (5) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... correctly assessed under Tariff Heading 84.06. 2. We have heard Shri V. Lakshmi Kumaran, learned advocate for the appellants and Shri J. Gopinath, learned S.D.R for the respondent. The first leg of the arguments of the learned Advocate is that :- (i) Rule 2(a) of the Interpretative Rules is inapplicable if the heading does not refer to an article ; (ii) If parts are to be classified under a particular heading by virtue of Section Note 2 of Section XVI of the Customs Tariff, such classification of the parts does not mean that the heading refers to such parts. Interpretative Rule can not be applied to Section Note. It can be applied to a Tariff Heading ; and (iii) The goods were not identifiable part of internal combustion engine in the condition in which they were imported. They required post importation processing. So, they can not be assessed as part by virtue of Section Note 2 of Section XVI. The second leg to his arguments is that in paragraph 11 of the decision of larger Bench of this Tribunal in the case of M/s Bharat Heavy Electricals Ltd. v. Collector of Customs, Madras, in appeals No. 260/79 and 266/79 vide order No. 1268 and 1269/86-B.2 dated 9-11-1986 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. End product, after machining, becomes only a Perkins Cylinder Head and nothing else. The facts of the present case entirely fit in paragraph 18 of the Larger Bench decision (Supra). So, the classification under Heading 84.06 was correct. 4. We have considered the arguments of both sides. Rule 1 of the Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 provides that classification shall be determined according to the terms of the Headings and any relative Section or Chapter Notes and, provided such Headings or Notes do not otherwise require, according to the provisions contained in the rules following Rule 1. Rule 2(a) says that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as imported, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), imported unassembled or disassembled. In Khandelwal Metal and Engineering Works case, 1985-(20)-E.L.T.-222 (SC), the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electrical purposes, or (iii) electrical conduit tubing and joints therefor] are to be classified according to the following rules : (a) Goods of a kind described in any of the Headings of Chapter 84 and 85 (other than Heading Nos. 84.65 and 85.28) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine or with a number of machines falling within the same Headings (including a machine falling within Heading No. 84.59 or electrical goods and apparatus falling within Heading No. 85.18/27) are to be classified with the machines of that kind. However, goods which are equally suitable for use principally with goods of Heading Nos. 85.13 and 85.15 are to be classified in Heading No. 85.13 (c) all other parts are to be classified in Heading No. 84.65 or 85.28." 6. Tariff Heading 73.33/40 reads as under :- 73.33/40. Other articles of iron or steel (1) Not elsewhere specified 150% (2) of stainless steel 300% Heading 84.06 under which the goods were assessed is as under : 84.06. Internal combustion piston engines 100% . Parts of internal combustion piston engines are classif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly be used for completion into the finished article and (3) these would have to be determined with reference to the nature of the material, its bulk, quantity, weight or value. While laying down these broad guide lines, the Tribunal has observed that no rigid principles can be laid down as to how and in what circumstances Rule 2(a) could be pressed into service for assessment of the imported unfinished article and that in each case the factors enumerated above would have to be taken into consideration individually, and then, collectively, to determine whether the imported article had attained the approximate shape and outline of the finished article and could be used only for completion into the finished article. Before coming to the above conclusions the Larger Bench of the Tribunal considered the CCCN Explanatory Notes which though not statutory, has the persuasive value. The Tribunal noted that in para 2 of the Volume I of CCCN Explanatory Notes it has been mentioned with reference to the provisions of Rule 2(a) in the CCCN (which is the same as Rule 2(a) in the First Schedule to Customs Tariff Act) that the provisions of that rule also apply to blanks, the term Blank being ..... X X X X Extracts X X X X X X X X Extracts X X X X
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