Fresh factual pleas and unfinished castings: appellate introduction barred, and copper bronze castings stayed classifiable as castings.

A fresh factual plea of non-marketability, unsupported before the lower authorities or in response to the show-cause notice, could not be introduced for the first time in appeal, and late material such as an outside opinion was rightly rejected. Copper bronze castings not shown to be precision-made, ready-for-use parts remained classifiable as castings under Heading 7419.91; the exemption for machine parts under Heading 84.13 was unavailable because further machining was carried out and the record did not establish that the goods had acquired the essential character of finished pump parts. The revenue's classification challenge therefore succeeded and duty liability was upheld.

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Issues: (i) Whether a fresh plea of non-marketability and supporting material could be introduced for the first time at the appellate stage. (ii) Whether copper bronze castings not further worked were classifiable under Heading 7419.91 or under Heading 84.13 with exemption under Notification No. 8/96-C.E. dated 23-7-1996.

Issue (i): Whether a fresh plea of non-marketability and supporting material could be introduced for the first time at the appellate stage.

Analysis: A party cannot be permitted to raise a completely new factual plea at the appeal stage when the plea was not taken before the lower authorities or in response to the show-cause notice. Material sought to be introduced long after adjudication, including an outside opinion, could not be brought on record to support a new contention. The appellate record already contained the relevant pleadings and documents, and the plea of non-marketability was within the respondent's knowledge from the outset.

Conclusion: The new plea and the late material were rightly rejected.

Issue (ii): Whether copper bronze castings not further worked were classifiable under Heading 7419.91 or under Heading 84.13 with exemption under Notification No. 8/96-C.E. dated 23-7-1996.

Analysis: The show-cause notice specifically alleged that the goods emerged as intermediate castings and were then sent for machining, and the appellate finding recorded that further working and machining were carried out in the assessee's own unit. There was no rebuttal of that finding by cross-objection or proof that the goods were precision castings ready for use as machine parts. Castings remain distinct articles and do not acquire the essential character of parts merely because they may later be used in pumps. The Board's circular relied upon applied only to castings that required no further machining and were ready for use as such, which was not established here.

Conclusion: The goods were correctly classifiable under Heading 7419.91 and were not entitled to exemption under Notification No. 8/96-C.E. dated 23-7-1996.

Final Conclusion: The revenue's challenge succeeded, the assessee's classification under Chapter 84 was not sustained, and duty liability on the impugned castings was upheld.

Ratio Decidendi: A casting that is not shown to be precision-made and ready for use as such remains classifiable as a casting under the specific tariff entry, and a fresh factual plea unsupported before the lower authorities cannot be raised for the first time in appeal.

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