2007 (10) TMI 205 - AT - Central Excise

Contention of appellant is that the goods in question are forgings & are classifiable u/CH 7326.19 & entitled for the benefit of Not. 223/88 - revenue contended CH 87 & 84 as parts of the Automobiles - As the forgings cleared by the appellants are not used as such & the customers under take further processes of turning the milling drilling grooving on them therefore the same cannot be held to be parts of Automobile goods classifiable under heading7326.19

Summary

Issues:
Classification of goods as forgings or parts of automobiles.

Analysis:
The appellants appealed against an order classifying the goods as parts of automobiles under heading 87.08 and 84.03. The appellants argued that the goods were forgings classifiable under Chapter 7326.19. They contended that the forgings were only processed by trimming and were further processed by customers to become identifiable parts of automobiles. The appellants relied on various tribunal decisions and Notification No. 223/88 to support their claim.

The revenue argued that the goods attained the shape of automobile parts and should be classified as such. They relied on a Tribunal decision and Rule 2(a) of Interpretation Rules to support their stance. The revenue also pointed out that the goods had specific part numbers, indicating they were parts of automobiles.

The Tribunal analyzed the facts and previous decisions. They noted that the appellants only removed excess material from the forgings, with customers undertaking additional machining operations. The Tribunal distinguished the present case from a previous case involving imported goods with sophisticated machining processes. They cited a Tribunal decision that classified forgings as forgings even after excess material removal. The Tribunal also referenced a Supreme Court decision supporting the classification of goods as forgings rather than parts of automobiles.

Considering the facts and Notification No. 223/88, the Tribunal concluded that the goods were classifiable under Chapter 73 of the Tariff as forgings. They set aside the impugned order and allowed the appeal in favor of the appellants.