Marketability and classification of pre-forged steel castings failed where further processing was still required before forging was complete.

Steel wheel castings were held not classifiable under Tariff Item 25(16)(ii) of the erstwhile CET because they had not emerged as forged articles in a finished, marketable form. The goods remained at a cast stage and required further processing before they could be treated as forged products; marketability therefore was not established. Revenue bore the burden of proving marketability with evidence and failed to discharge it. The earlier TISCO ruling was distinguished because it concerned goods that had already undergone the complete forging process, unlike the present pre-forged goods. The Commissioner's classification was set aside and the assessee succeeded on classification and marketability.

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Issues: Whether steel castings of wheel were classifiable under Tariff Item No. 25(16)(ii) of the erstwhile CET and liable to duty when they were still in a pre-forged, unmarketable condition.

Analysis: The item had not emerged as a forged product in a finished marketable form. It remained in a cast stage and required further processing before it could be treated as a forged article. For classification under Tariff Item No. 25(16)(ii), the goods had to emerge as a forged product. The burden lay on Revenue to establish marketability by evidence, which was not discharged. The earlier TISCO decision was held inapplicable because that case concerned goods that had already undergone the complete forging process, whereas the present goods were still at a pre-forged stage.

Conclusion: The classification adopted by the Commissioner was unsustainable. The appeal was allowed and the assessee succeeded on the issue of marketability and classification.

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