1983 (5) TMI 233 - AT - Central Excise

Summary

Issues: Classification of goods for customs duty under Item 25 of the Central Excise Tariff

In the case, the appellants contested the imposition of countervailing customs duty on "Castings in semi-finished condition for manufacture of Motor vehicles CKD Motor vehicle parts-Rear Axle housing (Iron castings)" under Item 25 of the Central Excise Tariff. The appellants argued that the goods, after undergoing processes like annealing, straightening, buffing, and rough machining in a foreign country, transformed into semi-finished articles not covered by Item 25-CET. On the other hand, the Department's representative contended that the processes did not change the nature of the goods, and they still qualified as iron castings falling under the said item (ECR 1983-65-D-BOM).

Analysis and Decision:

Upon careful consideration, the Tribunal agreed with the Department's representative that the processes carried out on the goods in the foreign country did not alter their fundamental nature as iron castings. The processes were deemed to be cleaning and strengthening activities, with the machining being rough to provide a smooth surface. The Tribunal noted that the significant processing to convert the iron castings into motor vehicle parts occurred post-importation into India. Consequently, the Tribunal concluded that the goods fell within the ambit of Item 25-CET and were rightfully subjected to countervailing duty. As a result, the appeal was dismissed.