Tool blanks needing further processing fall under the residuary tariff entry, not the finished-tools classification.

Drill blanks made from imported high speed steel, though ground, sharpened and grooved, were held not to be finished tools because they still required further processing before direct use as hand tools or machine tools. The Tribunal treated them as distinct goods that had not acquired the shape or character of finished drills, and rejected the view that they could be classified as twisted drills on that basis. Following earlier decisions on tool blanks, it held that goods intended for eventual conversion into tools do not fall under the tariff entry for finished tools merely because of that intended use. The blanks were classifiable under Item 68, not Item 51A(iii), and the appeal was allowed.

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Issues: Whether drill blanks manufactured from imported high speed steel were classifiable under Item No. 68 of the old Central Excise Tariff or under Item No. 51A(iii) as tools.

Analysis: The drill blanks, though subjected to grinding, edge-sharpening and grooving, were not ready for direct use as hand tools, machine tools or other tools for working in the hand. They required further processing before they could assume the character of the tools covered by Item No. 51A. The blanks were distinct goods, but they had not acquired the shape or character of finished drills, and the authorities treating them as twisted drills had proceeded on an incorrect basis. The reasoning followed earlier Tribunal decisions holding that tool blanks not capable of direct use do not fall under the tool entry merely because they are intended for eventual conversion into tools.

Conclusion: The drill blanks were classifiable under Item No. 68 and not under Item No. 51A(iii), and the appeal was allowed.

Ratio Decidendi: Goods which are only tool blanks and require further processing before they can be put to actual use are classifiable as separate goods under the residuary entry and not under the tariff item for finished tools.

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