Castings retain their heading after proof machining, and the assessee may choose the more beneficial exemption notification.

Castings cleared only after proof machining, removal of runners and risers, and surface cleaning remained castings under Heading 73.25 because those preliminary operations did not change their essential character into identifiable machine parts. On that basis, exemption under Notification No. 202/88 was available. Where two exemptions were available, the assessee could choose the more beneficial notification, and the Revenue could not compel adoption of a less advantageous exemption. The Revenue's challenge therefore failed.

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Issues: Whether castings cleared upto the stage of proof machining were classifiable under Chapter Heading 7325.10 and entitled to exemption under Notification No. 202/88, with the assessee being free to choose the more beneficial exemption where two notifications were available.

Analysis: The goods were held to remain castings under Heading 73.25 so long as only proof machining and similar preliminary operations had been undertaken and no further processing had transformed them into identifiable machine parts. The Board circular also supported the view that removal of runners and risers, surface cleaning and proof machining did not alter the essential character of the castings. On that basis, the exemption under Notification No. 202/88 was available. The availability of another notification did not permit the Revenue to compel the assessee to adopt a less beneficial exemption, since the assessee could elect the notification that was more advantageous.

Conclusion: The castings were entitled to classification under Heading 7325.10 and the assessee was entitled to claim the more beneficial exemption under Notification No. 202/88; the Revenue's appeal failed.

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