Incidental drilling on forged goods does not change tariff classification where essential character remains under Chapter 73.

Forged or cast articles may remain classifiable under Chapter 73 when only the prescribed post-forging processes are carried out, including surface cleaning, chipping or grinding, annealing, stress relieving, proof machining and surface coating. Additional drilling does not by itself require reclassification under Chapter 84 if it is merely incidental to handling, lifting or facilitating later operations and does not change the essential character of the goods. On that basis, the tariff classification under Chapter 73 was maintained and the proposed shift to Chapter 84 was rejected.

---

---

Issues: Whether forged items on which drilling was undertaken remained classifiable under Chapter 73 of the Central Excise Tariff Act, 1985, or were required to be classified under Chapter 84.

Analysis: The controlling clarification permitted forged or cast articles to remain in Chapter 73 where only the specified post-forging processes were carried out, namely removal of runner and risers, surface cleaning, chipping or grinding, annealing and stress relieving, proof machining, and surface coating. The disputed goods were additionally subjected to drilling, but the drilling was found to be only for handling, lifting, or facilitating subsequent operations, and not a process that altered the essential character of the goods. On that basis, the additional drilling operation did not justify shifting the goods out of Chapter 73 merely because it was not expressly listed in the circular.

Conclusion: The goods continued to remain classifiable under Chapter 73 and the proposed reclassification under Chapter 84 was not sustainable.

Final Conclusion: The demand based on reclassification failed, and the assessee succeeded on classification.

Ratio Decidendi: An incidental drilling operation that does not change the essential character of forged goods does not by itself alter their tariff classification when the goods otherwise fall within the Chapter 73 scheme.

---