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TMI Blog2017 (10) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... 84.83 of Central Excise Tariff and cannot be called as castings under Chapter Heading 73. 2. The brief facts are that: (i) The Appellant purchases from the market duty paid rough castings known on which they undertake certain surface cleaning operations like shot blasting, milling, fettling, proof machining, painting etc. If required by the customers, they undertake drilling of holes on the castings. (ii) The appellant sells the cleaned castings on which they had done above operations like shot blasting, milling, fettling, proof machining, painting etc. (iii) The department issued show-cause notice to the appellant inter alia saying that the appellant manufactured and cleared the goods which are in the category of finished machined ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant is now before the Tribunal in appeal against the said impugned Order-in-Appeal dated 28.2.2003. 3. Both sides have been heard. 4. The main pleading of learned Advocate of the appellant is that the castings (plummer blocks) sold by them are castings only having classification under chapter 73 of the Central Excise Tariff Act (CETA) and cannot be called parts of machinery which are classifiable under Chapter 84 of CETA. The appellant pleads that they are doing the process on rough castings like shot blasting, milling, fettling, proof machining, painting, etc. and thereafter sell the same to their buyers, who are doing further processes on the same at their premises to make the subject item fit enough to be part of their machin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s when it comes out of the casting mould. The Heading 73.25 would, therefore, include all castings from the stage of their emergence from the casting mould to the stage of being proof-machined. Similarly, an incomplete/unfinished part of machine or motor vehicle would also be covered under Chapters 84, 85 or 87 as the case may be. A machine part or motor vehicle part, subject to any section or Chapter note, would normally be one which is ready for use in a particular machine or motor vehicle. Application of Rule 2(a) would lead us to conclude that an incomplete or unfinished part of a machine or motor vehicle would fall under Chapters 84, 85 or 87, subject to fulfilment of the condition of essential character . Rule 2(a) does not permit us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proof machined. 3. It would thus appear that castings coming out of the castings moulds up to the stage of proof machining and requiring further machining before being used as machine parts would be appropriately classifiable under Chapter 73. However, those castings which do not require any machining after their emergence from casting moulds viz. precision castings and/or are, as such, ready to be used as machine parts would be regarded as articles having essential character of machine parts and would be classified under Chapters 84, 85, 86, 87 etc." 7. Considering above discussions and following the Tribunal s decision (supra) and in the light of Board s Circular (supra), the impugned order is set aside and the appeals are allowed with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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