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TMI Blog1997 (6) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... fied under Tariff Item No. 26AA(V). On the introduction of CET 1985, a show cause notice was issued asking the assessee to show cause why the castings should not be classified under Heading 8607.00 as part of Railway locomotives etc. in place of heading 7307.00 suggested by the assessee. After hearing the assessee the Assistant Collector confirmed the classification under Heading 8607.00 and confirmed differential duty also. The Collector having upheld the order, the present appeal is before us. 2. We have heard Shri K.K. Anand, learned Advocate for appellants and Shri G.D. Sharma, JDR, for the Revenue. 3. Under the old Tariff castings merited classification under Tariff Item No. 26AA(V) whereas parts of machinery etc. were classifiable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which reliance was placed by Shri Anand in this case also. The Tribunal examined the classification of castings of machine parts/motor vehicle parts where the assessee has suggested the classification under Heading 73.25 and the department had restored to classification under Chapters 84 or 87. In that case also reliance was placed by the department on the said rule. The Tribunal had this to say in this regard : Lower authorities have relied on Rule 2(a) of Interpretative Rules [to] arrive at the finding that the castings in question are parts of machine or parts of motor vehicle. A machine part or a motor vehicle part would, subject to any section or chapter note, normally be one which is ready for use in a particular machine or mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansformed into identifiable parts falling under Chapter 86. We observe that before the introduction of the new Tariff, the department had accepted their identity as steel castings. In view of the non-applicability of the logic of Rule 2(a) it was for the department to prove that the goods had transformed into such parts from the starting point of castings. This was not done anywhere in the proceedings. 8. On the facts as disclosed in the proceedings and following the ratio of the judgment cited and examined by us, we hold that at the material time the goods were classifiable under Chapter 73 and not Chapter 86. We allow this appeal and set aside the lower orders and direct consequential relief if warranted. - - TaxTMI - TMITax - Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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