In Brief
The Supreme Court held that essential components of boilers, when cleared and transported separately for logistical convenience, must be classified under tariff sub-heading 8402.10 (complete boilers at 10% duty) rather than 8402.90 (parts at 15% duty). Drawing on the Indian Boilers Act, 1923, and HSN classification notes, the Court determined that essential elements like drums, economizers, superheaters, feed pipes, and valves constitute the boiler machine itself. Conversely, auxiliary components like fans and control equipment, though used with boilers, are non-essential and may be classified as parts. The appeal by the Commissioner of Central Excise was dismissed, upholding lower authorities' reasoning that unassembled essential components retain the character of the complete machine for tariff purposes.
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