1995 (3) TMI 205 - AT - Central Excise

Summary

Issues involved: Classification of items as identifiable machine parts under Chapter 84 for Central Excise duty.

The appellants declared certain items as cast articles of iron and steel under Heading 73.25, while the Collector (Appeals) classified them as identifiable machine parts under Chapter 84, attracting Central Excise duty at 15% ad valorem.

Details of the Judgment:

The appellant argued that the disputed items, being castings not machined beyond fettling, should be classified under sub-heading 7325. They cited relevant case law to support their contention.

On behalf of the Revenue, it was pointed out that after certain processes in the appellant's factory, further machining was done by sub-contractors before delivery to customers. It was argued that this final machining should classify the goods under Chapter 84.

After examining the submissions and records, it was noted that the rough castings in the appellant's factory underwent processes of heat treatment, scraping, and fettling only. Referring to a relevant Tribunal order, it was held that the goods were correctly classifiable under Heading 73.25. The argument that further machining by sub-contractors should change the classification to Chapter 84 was rejected.

The judgment emphasized that goods should be assessed based on their form at the time of clearance. Since the goods had only undergone specific processes before clearance, any subsequent machining by sub-contractors would not change their classification. The liability for duty on further processed goods would fall on the job worker.

Therefore, the impugned order was set aside, and the appeals were allowed.