Cc vs Hindustan Motors Ltd. on 30 June, 2003
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. vs, C.C, 1990(49) ELT 640(SC) 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 Respondents that for applying the second part of Rule 2(a) hundred percent parts should be imported in unassembled or disassembled condition.