Circular No. 225/59/96-CX dated 1/7/96

Subject: Central Excise - Classification of iron and steel castings -

I am directed to invite your kind attention to Circular No. 23/89 (F.No.139/7/88-CX.4) dated 28th July, 19.89 wherein it was clarified that castings as they emerge from the mould or after fettlings etc. would be appropriately regarded as semi-finished articles if having the essential character of the finished machine parts or as a blank for machine parts which by application of Rule 2(a) of the Rules of Interpretation would be classified under Chapter 84, 85,86,87 etc.

2. CEGAT in its Order No. E.103 to 105/93 B.I dated 20th May, 1993 in the case of M/s Shivaji works Ltd. v. CCE, Aurangabad (1994 (69) ELT 647 (T)) has held that the headings 76.25 would include all castings from the stage of their emergence from the castings mould to the stage of being 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 Chapter 84,85,86,87 etc.

4. The above instructions would apply mutatis mutandis to forgings which have not undergone any further process-after fettlings.-

5. Board"s Circular No. 23/89 (F.No.139/7/88-CX.4) dated 18.9.1989 stand superseded.

6. All pending assessment may be finalised on the above basis.

Sd/-
(Sanghamitra Pand)
Deputy Secretary to The Government of India

F.No.l39/ll/9frCX.4

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