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TMI Blog2005 (1) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... removed from the factory are of auxiliary nature, one has to agree that an incomplete boiler in unassembled form is cleared. That the boiler in unassembled form is removed in several lots on different dates itself does not mean that parts but not the whole are cleared from the factory in view of the fact that the respondent has a contract to erect and commission a boiler and has been disclosing this fact to the Department. Thus, we hold that the parts removed in several consignments is a boiler in incomplete form and therefore have to be classified under the heading meant for the complete machine, in this case under 8402.10. We uphold the contention of the Commissioner that Rule 2(a) of Interpretative Rules apply to this case. We therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue's appeal against the order of Commissioner (A). 2. Briefly the facts are that the respondent is engaged in the manufacture of boilers of huge sizes. He enters into turnkey contract for the supply, erection commissioning of such boilers. The pressure parts of such boilers are manufactured in the respondents' factory. Some parts are manufactured at the respondents' vendors premises and brought to his factory. The parts which are manufactured by the respondents and the ones that are brought to the factory are cleared together. The respondent clears these parts classifying them under Chapter Sub-heading No. 8402.10 of CETA applicable to boilers on payment of duty. The following parts of the boiler are cleared by the respondent classifying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form and are therefore classifiable under 8402.10. While coming to such a conclusion he relied on Rule 2(a) of Interpretative Rules. It bears no repetition that this Rule deals with classification of goods, incomplete at the time of removal, but are so far advanced as to acquire essential characteristics of a complete machine/goods even when they are removed in unassembled form. The Commissioner after having decided that the goods as removed by the respondents are classifiable under sub-heading 8402.10 meant for boilers also held that the value of brought out items is not to be added to the assessable value. He relied on the experts opinion (Professor of Mechanical Engineering Department Government Engineering College Pune) who opined that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that some of the parts removed from the factory are of auxiliary nature, one has to agree that an incomplete boiler in unassembled form is cleared. That the boiler in unassembled form is removed in several lots on different dates itself does not mean that parts but not the whole are cleared from the factory in view of the fact that the respondent has a contract to erect and commission a boiler and has been disclosing this fact to the Department. For the reasons stated above we hold that the parts removed in several consignments is a boiler in incomplete form and therefore have to be classified under the heading meant for the complete machine, in this case under 8402.10. We uphold the contention of the Commissioner that Rule 2(a) of Interp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the Shrike Construction Equipments Pvt. Ltd. v. CCE, Pune [1997 (95) E.L.T. 644 (Tribunal)]. 9. We observe that the respondents reliance on the CBEC order cited supra is misplaced. The said order does not relate to the present issue that is whether the value of bought out items is to be added or not. The decision in Shrike Construction Equipments Pvt. Ltd. case does not decide the issue of inclusion of value of bought out items. The Revenues' contention that without these parts a boiler cannot be commissioned appears to be correct. For instance a boiler cannot be functionable without parts such as feed water pump, safety valves, process valves, level guager etc. These parts are necessary to make a boiler functional. Their value therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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