TaxTMI 
TaxTMI 
1987 (10) TMI 195
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....use in the manufacture of their two-wheeler and three-wheeler scooters. The lower authorities had assessed the goods to basic customs duty under Heading 84.06 (as part of internal combustion engine) and 87.09/12(1) (as part of scooter) respectively, with additional customs duty under Item 26AA of the Central Excise Tariff in some cases and under Item 68 thereof in others. In doing so, the lower authorities have held that by application of the Interpretative Rule 2 (a) of the Customs Tariff Act 1975, both the goods were deemed finished components. The appellants' prayer is that the goods in both cases were only rough forgings, that Interpretative Rule 2 (a) was not applicable and that the basic customs duty should be assessed only under Head....
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....edecessor Appellate Collector had held in his order, dated 5-4-1980 that the goods were unmachined rough forgings only and that, therefore, they were classifiable under Chapter 73 of the CTA. This order was not revised by the Central Government and hence it became final. The Department followed this order for about three years. The successor authorities, could, no doubt, change the classification prospectively but they could do so only for sound and cogent reasons vide 1983 E.L.T. 328 (Delhi) - J.K. Synthetics Limited. No such sound or cogent reasons had been brought on record. 4. The learned representative of the Department argued, with the help of the invoices and drawings placed on record by the appellants, that both the goods as impo....
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....ns of Rule 2(a) it has to be seen (1) whether the imported product had attained the approximate shape or outline of the finished article; (2) whether the said imported article can only be used for completion into the finished article and (3) these would have to be determined with reference to the nature of the material, its bulk, quantity, weight or value. This very enumeration would therefore establish that no general principles can be laid down as to how and in what circumstances Rule 2(a) could be pressed into service for assessment of the imported unfinished article. In each case the factors enumerated above would have to be taken into consideration individually, and then collectively, to determine whether the imported article had attai....
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....he appellants, we are satisfied that the goods as imported had attained the approximate shape and outline of the finished article. We find further that the imported goods were not general purpose blanks that could be further machined for being fitted in any one of the several machines that may require the complete article. On the contrary, the goods having been precisely shaped and forged to specific dimensions according to specified part drawings, they could be finished only into the Connecting rod and Cross, the two components which fitted the appellants' vehicles. We find also that the goods were made of special steel - EN 353 and EN 28. In the circumstances, we agree with the learned Representative of the Department that the goods as im....