Castings needing further machining remain under Chapter 73, not machine parts under Chapter 84, until they gain essential character.

Rough castings that undergo only intermediate processes such as shot blasting, milling, fettling, proof machining and painting remain classifiable as castings under Chapter 73 when they have not acquired exact dimensions or the essential character of ready-to-use machine parts. Applying Rule 2(a) of the Interpretative Rules, unfinished castings continue in Chapter 73 unless further machining has made them fit directly into the customer's machine. The stated position is consistent with the view that castings stay under Chapter 73 up to proof machining and with the Board circular on castings requiring additional machining before use as machine parts.

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Issues: Whether the rough castings, after processes such as shot blasting, milling, fettling, proof machining and painting, were classifiable under Chapter 73 of the Central Excise Tariff or as parts of machinery under Chapter 84.

Analysis: The castings cleared by the appellant had undergone only intermediate processing and did not acquire exact dimensions or specifications so as to fit directly into the customers' machines. Applying the principle in Rule 2(a) of the Interpretative Rules, an unfinished casting may retain its classification as a casting unless it has acquired the essential character of a ready-to-use machine part. The Tribunal also relied on the earlier view that castings remain classifiable under Chapter 73 up to the stage of proof machining, and noted the Board circular taking the same position for castings requiring further machining before use as machine parts.

Conclusion: The goods remained classifiable under Chapter 73 and could not be treated as machine parts under Chapter 84.

Final Conclusion: The classification adopted in the impugned order was unsustainable, and the assessee was entitled to relief in the appeals.

Ratio Decidendi: Castings that require further machining and have not acquired the essential character of ready-to-use machine parts continue to be classifiable as castings under Chapter 73 rather than as parts under Chapter 84.

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