Tariff classification of drop-hammer steel forgings follows binding circulars and trade understanding, placing proof-machined pieces in 7208.00.

Steel forgings made by drop hammer and subjected up to proof-machining were treated as roughly shaped pieces classifiable under Chapter sub-heading 7208.00, not 7308.00. The classification issue was resolved by reading the tariff entries for the relevant period in light of trade understanding, because they were not fully aligned with the HSN. The Board's circular was binding on departmental authorities and clarified that such forgings fell within 7208.00. On that basis, the contrary departmental classification was rejected and the assessee's classification position was upheld.

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Issues: Whether the steel forgings manufactured by the process of drop hammer were classifiable under Chapter sub-heading 7308.00 or under Chapter sub-heading 7208.00.

Analysis: The classification turned on the proper understanding of the tariff entries for the relevant period, which were not fully aligned with the HSN. The Board's circular clarified that forgings subjected up to proof-machining were to be regarded as roughly shaped pieces falling under Chapter sub-heading 7208.00, and that departmental authorities were bound to follow the circular. In that view, the reliance placed on the contrary classification was not accepted.

Conclusion: The forgings were correctly classifiable under Chapter sub-heading 7208.00 and not under Chapter sub-heading 7308.00.

Final Conclusion: The departmental challenge to the appellate classification failed, and the assessee's classification position was upheld.

Ratio Decidendi: Where the relevant tariff entries are not fully aligned with the HSN, classification must accord with established trade understanding and binding Board circulars, including for forgings treated as roughly shaped pieces.

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