Central Excise - Classification of Rivets either under Tariff Item 25(8) or under Tariff Item 68 - Doubts regarding - Central Excise - 6/86

Central Excise - Classification of Rivets either under Tariff Item 25(8) or under Tariff Item 68 - Doubts regarding Tariff Advice No. 6/86 Dated 26-2-1986 [From F. No. 139/3/86-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Classification of Rivets either under Tariff Item 25(8) or under Tariff Item 68 - Doubts regarding. Doubts have been raised as to whether the rivets would be classifiable under Item 25(8) as pieces roughly shaped by forging of Iron and Steel, or under the residuary Item 68 of CET as goods, not elsewhere specified. 2. The issue was discussed in the 26th South Zone Tariff Conference held at Bangalore on the 16th January, 1986. 3. The Conference observed that the rivets are manufactured from imported steel wire rods in coils by the process of cold forging. After the rivets are forged into the required sizes or shapes, they are further subjected to a process of tempering by heating them in an electric furnace. In this connection, the contents of Board's earlier Tariff Advice No. 37/82 were also discussed wherein it was viewed that the rivets would be classifiable under Tariff Item 26AA(ia) as it existed prior to 1-8-1983 as 'forged shapes and sections, not otherwise specified' provided no further processes other than forging are employed. In the instant case, the rivets undergo the process of tempering after forging and the tempering materially alters the quality of rivets and reduced the brittleness and provides better stress-bearing capabilities. Further, since rivets after forging and tempering acquire a definite finished shape, it was viewed in the Conference that it cannot be classified under Item 25(8) of CET as pieces roughly shaped by forging. The product cannot also be classified under Item 25(11) since the rivets in question will have cross-sections in the form of circles or ovals. 4. The Board further observes that the classification of the product is to be decided with reference to the existing tariff description of Item 25(8) which covers "pieces roughly shaped by rolling or forging of iron and steel, not elsewhere specified", and not with reference to the tariff description of sub-item (ia) of Item 26AA which existed prior to 1-8-1983 and which, inter alia, covered "all other rolled, forged or extruded shapes and sections, not otherwise specified". The Board agrees with the conclusions reached at the Conference and is of the view that the rivets of iron and steel manufactured by forging process, which have further undergone tempering process, would be classifiable under the residuary Item 68 of CET. ANNEXURE It is considered that rivets manufactured by forging, which have further undergone the tempering process, are classifiable under residuary Item 68 of CET.