Classification of Drop Dies used for the manufacture of steel articles whether under Heading No. 8207 or 8466 of Central Excise Tariff Act, 1985 - Central Excise - 7/91-CX.4

Classification of Drop Dies used for the manufacture of steel articles whether under Heading No. 8207 or 8466 of Central Excise Tariff Act, 1985 Circular No. 7/91-CX.4 Dated 1-5-1991 [From F. No. 154/12/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Classification of Drop Dies used for the manufacture of steel articles whether under Heading No. 8207 or 8466 of Central Excise Tariff Act, 1985. Doubts have been raised regarding the correct classification of Drop Dies used for the manufacture of forged steel articles whether under Heading 8207 or 8466 of Central Excise Tariff Act, 1985. It has been stated that Drop Dies are used for the manufacture of forged steel articles. For this a special type of steel blocks each weighing 2 to 3 tonnes or sometimes more depending upon the articles to be forged are subjected to dovetail machining. Impression sinking is then given to these blocks either by turning in lathes or by copy milling. Then these blocks undergo finishing operations such as grinding, turnplate suiting etc. The finished die is in two parts, upper and lower. For undertaking forging upper die is connected with a 'Ram' (die-holder) and the lower die to the 'Sow', which are then attached to the power hammer. The hot metal used for forging is placed in the lower die. The upper die connected with the ram, hammers the metal placed in the lower die, in order to produce forging. The issue of classification of such drop dies has been discussed in the 3rd Tariff-cum-General Conference of the Collectors of Central Excise, South Zone held at Madras on 26th and 27th September, 1990. The Conference examined the view that drop dies are not included in the description of Heading 8207 and is excluded by Note 1 to Chapter 82 and therefore are more appropriately classifiable as parts and accessories of power hammers under Heading 8466. This view was not accepted in HSN Explanatory Notes at page 1110, drop dies are mentioned as classifiable under Heading 8207, and as Heading No. 8207 of the Central Excise Tariff Act, 1985 is aligned with the Corresponding Heading of HSN. The Conference concluded that drop dies would be appropriately classifiable under Heading No. 8207 of Central Excise Tariff Act, 1985. Board agrees with the above recommendation of the Conference and accordingly, it is clarified that the product drop dies are appropriately classified that the product drop dies are appropriately classifiable under Heading 8207 of Central Excise Tariff Act, 1985. Field formations and Trade may be informed suitably. All pending assessments may be finalised accordingly.