Forgings retain tariff character until machining converts them into identifiable automobile parts, allowing concessional notification benefit.

Forged goods cleared only after removal of excess material by trimming, without the machining needed to become identifiable automobile parts, retain their character as forgings under Chapter 73. Because turning, drilling, boring, grooving and similar finishing operations were still to be undertaken by customers, the goods did not fall as finished parts under Chapters 84 or 87. On those facts, the concessional benefit under Notification No. 223/88 applied, and the contrary classification was unsustainable.

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Issues: Whether the goods cleared by the assessee were classifiable as forgings under Chapter 73 or as parts of automobiles under Chapters 84 and 87, and whether they were eligible for concessional duty under Notification No. 223/88.

Analysis: The goods were found to be only forgings on which the assessee had removed excess material by trimming. The further operations necessary to convert them into identifiable automobile parts, such as turning, drilling, boring, grooving and similar machining, were carried out by the customers. On these admitted facts, the goods had not acquired the character of finished automobile parts and remained classifiable as forgings. The notification also applied because the forgings had not undergone machining or surface treatment beyond removal of excess material.

Conclusion: The goods were classifiable under Chapter 73 and entitled to the benefit of Notification No. 223/88; the assessee succeeded on this issue.

Final Conclusion: The classification adopted in the impugned order was unsustainable, and the assessee's goods were held to remain forgings eligible for the concessional notification.

Ratio Decidendi: Where forged goods are cleared only after removal of excess material and have not undergone the machining necessary to become identifiable finished parts, they retain their character as forgings for tariff classification and for the corresponding exemption or concessional notification.

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