Castings exemption under excise notification extends to machinery parts classifiable in Section XVI when casting identity is retained.

Investment castings classifiable as finished parts under Chapters 84, 85 or 87 were held to retain their character as castings or cast articles for purposes of Notification No. 223/88-C.E. The notification was interpreted as extending exemption to cast products even when they fell within Section XVI, because the goods were obtained by the casting process and had not undergone processing beyond what the notification permitted. Their identity as castings was not lost merely because they were also recognisable as machinery parts, so the exemption was available.

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Issues: Whether investment castings, though classifiable as finished parts under Chapters 84, 85 or 87 of the Central Excise Tariff, were entitled to exemption under Notification No. 223/88-C.E.

Analysis: The goods were obtained by the casting process and remained castings or cast articles notwithstanding their recognisability as machinery parts. The notification used the expressions "castings" and "cast articles" in relation to goods falling under Heading 73.25 as well as Chapters 84, 85 and 87, indicating that the benefit was intended to extend to cast products even when they were classifiable in Section XVI. Since the goods had not undergone processing beyond what was permitted by the notification, their identity as castings was not lost merely because they were also machinery parts.

Conclusion: The exemption under Notification No. 223/88-C.E. was available to the goods and the issue was decided in favour of the assessee.

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