Tariff classification of un-machined crank case castings follows actual condition, not a heading for different articles.

Un-machined and unfinished crank case castings were held, on the basis of the supply and order documents, to fall under Tariff Item 26AA rather than Tariff Item 63 because classification must follow the actual condition of the goods. The department's contrary classification was not sustained. The goods were directed to be re-assessed under the correct tariff entry, with exemption notification benefit if applicable, and consequential refund was payable.

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Issues: Whether the imported crank case casting, described as un-machined, was correctly classifiable for levy of countervailing duty under Tariff Item 26AA of the Central Excise Tariff rather than under Tariff Item 63, and whether the appellants were entitled to re-assessment and refund.

Analysis: The documents relating to the supply and order confirmation identified the goods by the same part number and described them as crank case casting in un-machined condition. On that basis, the goods were found to be unfinished and un-machined. Such goods fell within Tariff Item 26AA of the Central Excise Tariff and not under Tariff Item 63.

Conclusion: The classification adopted by the department was not sustained. The goods were directed to be re-assessed under Tariff Item 26AA, with exemption notification benefit if applicable, and consequential refund was payable.

Final Conclusion: The appeal succeeded on classification, resulting in reassessment of the imported goods under the correct tariff heading and grant of consequential refund.

Ratio Decidendi: Goods shown by the record to be un-machined and unfinished must be classified according to their actual condition under the tariff entry applicable to such goods, and not under a heading meant for a different class of articles.

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