TMI Blog1994 (5) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... pproval of the classification list. Later on the department appeared to have a change of mind and show cause notices were issued that the benefit of the said notification was not available inasmuch as it was subject to the condition that forged goods had not been subjected to any machining or surface treatments, other than :- (a) annealing, tempering, case-hardening, mitriding and similar heat treatments to improve the properties of the metal; (b) descaling, pickling, scraping and other processes to remove the oxide 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n machining all dimensions of forged rings to achieve the nearest dimensions of bearing race keeping grinding allowance, heat treatment and grinding operations; therefore, the rings which come into existence become clearly identifiable parts of ball bearings. Hence, by invoking Rule 2(a) of the Interpretative Rules of the Tarrif, the Collector has held that the goods manufactured by the appellants fall under Tariff Heading 84.82; they cease to be forged products and hence the benefit of Notification 223/88 has been denied. 3. Learned Chartered Accountants submits that the learned Collector has fallen into error by treating the process of punching the hole and the process of separating the inner and outer ring by the power press machine as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch into a long unsupported bar would lead to buckling and eccentric piercing. A rim forged initially will prevent this, as shown by the forging of a drag link. If it is not desired in the final product, the rim may be trimmed off subsequently. Rings of a relatively low weight-to-diameter ratio are easily produced in an upsetting and piercing operation, starting from stock that is the size of the hole diameter. Where the diameter of the hole desired in a ring is larger or smaller than the diameter of the stock most suitable for upsetting, special techniques are used to modify the stock diameter adjacent to the ring before punching the ring from the stock. A particular advantage of this operation is the saving of material through eliminatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the authority of a submission in TELCO v. Collector [1990 (50) E.L.T. 571 (Trib.)] that this judgment of the Tribunal in the case of Antifriction Bearing Corp. has been upheld by the Supreme Court [Para 7.1 of TELCO]. On the basis of the aforesaid submissions, learned Chartered Accountant has submitted that the appeal deserves to be allowed on merits alone. However, he submit that he has a strong case on the demand being hit by limitation inasmuch the classification list has been duly approved. The show cause notice has been issued in the case of Dhanpati Steel Mill on 12-3-1993 for the period of Jan. 1990 to March 1992. In the case of SLM Udyog show cause notice has been issued on 10-12-1992 for the period October 1991 to Feb. 1992. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs are merely forged product. The two processes namely that of punching and of separating the inner and outer rings, cannot be treated as post forging operations. It is not disputed that the appellants have been clearing and selling their products as forged rings. Nothing has been brought on record that the two processes are subsequent to the process of forging of hollow bodies. We are unable to appreciate Collector s finding that the aforesaid two processes of punching and separating inner and outer forged rings are processes of machining inasmuch as all dimensions of forged rings are nearest to the dimensions of bearing race because no further process of manufacture has been brought on record while the Collector has set out the process o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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