DEPB classification of machined forgings denied where hammer unions and swivel joints had become identifiable ready-to-use parts.

Hammer unions and swivel joints described as machined forgings were held not to fall within DEPB Entry No. 71(ii) for alloy steel and stainless steel forgings (machined). The entry applied only to goods that retained the character of forgings; on the facts found, these products had ceased to be forgings and had become identifiable ready-to-use parts in trade. The fact that further drilling or reduction in height might be required at the buyer's end did not change their basic character. Earlier authorities on castings and machining were distinguished because they arose under different exemption notifications and on different factual matrices. The DEPB claim therefore failed.

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Issues: Whether hammer unions and swivel joints, described as machined forgings, were covered by DEPB Entry No. 71(ii) for alloy steel and stainless steel forgings (machined).

Analysis: Entry No. 71(ii) applied only to forgings (machined). On the facts found, the goods had ceased to remain forgings and had become identifiable products and parts in ready to use condition, known in trade as hammer unions and swivel joints. The further drilling or reduction in height required at the buyer's end did not alter their basic character. The earlier authorities on castings and machining were distinguishable because they arose in the context of different exemption notifications and different factual settings.

Conclusion: The goods were not covered by DEPB Entry No. 71(ii); the claim to DEPB benefit failed.

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