Well, I am glad you have found the culprit! Now on with the proper assembly!
I am an old engine builder - General Motors, Volkswagen, others... since starting on Listers about a dozen years ago, I have learned that they require a special attention to detail above and beyond the others. The parts are not at all standard regardless of source, and Lister has often changed suppliers, and specs have changed on them. It is not safe to assume anything, everything must be checked and checked twice, it is often the darn thing that you forget to look at that causes a problem. It is not at all a safe bet to just throw everything together and expect it all to work together without adjustment and a bit of tinkering.
You could have easily received the wrong size rings due to mis-packaging... Indian manufacturing makes rings (and other parts) for some of the major name brands in the industry. They are capable of very high quality given enough funding and incentive to do so.
I hope the parts supplier helps you out properly and your build goes smoothly from here on out!
dieselgman