Rough steel castings stay under Heading 73.25 where further machining is required and no misclassification is proved.

Rough steel castings that required further machining remained classifiable under Chapter Heading 73.25 rather than as machine parts under Chapters 84 to 87, because the evidence showed only unfinished cast articles were manufactured. The approved classification list and the assessee's explanation supported Heading 73.25, while the buyer's correspondence and the senior manager's statement indicated the goods were not complete parts fit for use without additional processing. The Revenue also failed to prove suppression or misclassification sufficient to sustain the demand, so the classification and the assessee's declared position were accepted.

---

---

Issues: Whether the goods manufactured by the assessee were rough steel castings classifiable under Chapter Heading 73.25 of the Central Excise Tariff Act, 1985, or machine parts falling under Chapters 84 to 87, and whether the Revenue had discharged the burden of proving suppression or misclassification for invoking the demand.

Analysis: The approved classification list described the goods as other cast articles of steel under Heading 73.25, and the assessee had earlier explained that it manufactured rough shaped castings not attaining the character of articles under Chapters 84 to 87. The material relied on by the Revenue did not establish that the castings were complete machine parts; the correspondence from the buyer indicated further machining before use, and the statement of the assessee's senior manager supported the case that only rough castings were manufactured. On the evidence, the Revenue failed to prove that the goods were covered by Chapters 84 to 87 or that the assessee had wrongly described them in the classification list.

Conclusion: The goods were rightly treated as rough castings classifiable under Chapter Heading 73.25, and the demand was not sustainable.

---