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TMI Blog2024 (9) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... d articles. Similarly, unfinished or incomplete articles also deserve to be classified as complete or finished articles. If they are imported as parts which, if assembled, will not make the complete article but only make an incomplete article but such incomplete article will have the essential characteristics of the complete article such parts should also be classified as complete articles. It is undisputed that the plastic body, heating element, lid are imported through the Bill of Entry. The essential characteristics of an electric kettle is to heat the water using electricity to turn off heating as soon as the water attaining the required temperature. Heating element and thermostat and the body in the water is to be heated are all import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive for the department / appellant Shri Prachit Mahajan and Shri Shubham Jaiswal , Advocates for the respondent ORDER P. V. SUBBA RAO : 1. This appeal and the stay application have been filed by the Revenue to assail the Order in Appeal dated 08.04.2022 Impugned order passed by the Commissioner (Appeals) whereby he set aside the order in original dated 13.08.2021 passed by the Deputy Commissioner and allowed the appeal of the respondent herein. The stay application is filed by the Revenue to seek stay of this order. This application is infructuous since the appeal itself has been taken up for hearing. The Cross objection has been filed by the respondent to oppose the appeal and pray that the impugned order may be upheld and the Revenue s ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) the imported goods should be classified as electric kettle as asserted by the Revenue or they should be classified only as parts of electric kettle as held by the Commissioner (Appeals). Submission by the Department 7. The case of the department is that the imported goods have the essential character of electric kettle because it includes kettle body, Plastic lid, thermostat, base plastic top and base plastic bottom. If these are assembled they have the essential characteristics of the electric kettle. The essential character of an electric kettle is to heat the liquid inside through electro thermic mechanism and for this purpose the heating element is included under kettle body. The bottom part provides electric connection. The thermos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain parts but there are also other essential parts such as switch assembly of kettle, controller with sensor, electric wire, ISI plug, Screw, Gift Box, Master Carton, rating label from the domestic market without which the electric kettle cannot made functional. It is only when all the parts which are imported as well as those which are domestically procured are assembled will the article get its essential characteristics and will be marketable as electric kettle. Therefore, the parts imported by the respondent deserve to be classified only as parts of electric kettle and they cannot be classified as an electric kettle by applying GIR 2(a). 11. We have considered the submissions advanced by both the sides. 12. The short question to be answ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cter of the goods. It is required for assembly of the goods, which is always required in case of goods Imported in unassembled form. 13. The finding of the Commissioner (Appeals) on this question is as follows: 5.7. I also find merit in the contention of the appellant that the imported goods, i.e. Kettle Body, Plastic Lid, Thermostat, Base Plastic Top and Base Plastic Bottom cannot be put together by means of simple fixing device or by riveting or wielding. In fact, the electric kettle is incomplete without Assembly of Kettle controller with sensor, Electric wire and ISI Plug etc. which are procured by the appellant from the domestic market and put together by the appellant in India. 14. As per GIR 2(a) goods in CKD or SKD condition deserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc., are minor parts without which also the kettle will have the essential characteristics of complete kettle although it will be incomplete. In fact, the Commissioner (Appeals) also recorded that the electric kettle will be incomplete without these parts without which it cannot be put in the market as an electric kettle. He, has lost sight of the fact that kettle incomplete also should be classified as complete kettle as per GIR 2(a). He misunderstood this rule and felt that unless all parts are imported together, an incomplete article or parts which constitute an incomplete article but which has the essential features of an complete article cannot be classified as a complete article which is contrary to GIR 2(a). 15. We, therefore, have n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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