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TMI Blog2002 (5) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central Excise Tariff Act respectively and other castings of iron falling under Heading 73.25 of the Tariff; that a show cause notice dated 4-8-94 was issued to them for disallowing the benefit of Notification No. 223/88-C.E. contending that they had carried out (i) heat treatment, (ii) shot blasting and (iii) other machining operations such as grinding, etc. to manufacture the impugned items; these items were manufactured as per customers' specifications and the customers did not carry out any further manufacturing operations on the impugned products and these items could no longer be called as castings after machining and other operations; that the Assistant Commissioner, under Adjudication Order No. 121/99, dated 28-12-99 dropped the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are then subjected to chipping grinding and cleaning for surface finish and the inspection is done by the Appellant's inspection department and thereafter the material is dispatched." 3.2 He mentioned that grinding operation to remove the excess metal is generally known as fettling; that then the castings are subjected to heat treatment to attend the desired properties; that they specifically mentioned that they were only doing grinding (fettling), heat treatment and shot blasting; that process of shot blasting is also covered by the process mentioned in Notification i.e. "descaling, pickling, scrapping and other processes to remove the oxide scale and crust formed during the heating of the metal"; that Notification No. 223/88 exempts c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 96 [1996 (87) E.L.T. A131 (S.C.)]. 4. Countering the arguments, Shri M.P. Singh, learned Departmental Representative, submitted that the products manufactured by the Appellants are fully finished products; that the allegation contained in the show cause notice was that no machining was being done after removal of the goods from the Appellants' factory; that there is no evidence that the impugned castings were not ready to use as machine parts; that the reading of the decision in the case of Shivaji Works Ltd. - 1994 (69) E.L.T. 674 (T) is not correct; that the ratio of the said decision is not applicable since in that case, castings required further machining to make an essential part of a particular machine; that in the instant case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scale and crust formed during the heating of the metal; (c) rough coating intended solely to protect products from rust or other oxidation, to prevent slipping during transport and to facilitate handling for example, paints containing an active anti-rust pigment such as red lead, zinc powder, zinc oxide, zinc chromate, zinc oxide (iron minimum, jewellers rouge), and non-pigmented coatings with a basis of oil, grease, wax, paraffin wax, graphite, tar or bitumen; (d) removal of small portions of the metal for testing purposes; and (e) removal of surface defects, or of excess material by grinding, chipping, filing or proof machining., provided that in both the cases there is no change in the form of the product." 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification is available to those goods falling under appropriate Chapter of Section XVI, which have been obtained by a process of casting and not to other such parts which have been obtained by a method not specified in the notification. The Terminology has no doubt, had to be employed because of the fact given the various methods of castings which result in articles with varying degree of precision, a casting may be classifiable either under Chapter 73 or under Chapters 84, 85 or 87. In the main, castings have to undergo processing to remove excess metal or smoothening them, etc., before they can be recognizable as machinery parts classifiable under Chapter XVI. Hence, such castings would initially pay duty under Chapter 73 and after ..... X X X X Extracts X X X X X X X X Extracts X X X X
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