1994 (2) TMI 156

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....sifiable under Chapter Heading 7325.10 as claimed by the appellants. 2. The brief facts of the case are that the appellants are engaged in the manufacture of cast iron castings which after rigorous machining etc. are used in the manufacture of machined parts and motor vehicle parts etc. The appellants claimed their classification under Chapter Heading 7325.10 as unmachined castings and cast articles but they were issued a show cause notice stating that since these castings have attained the essential shape/character of the final goods, they are excluded from the purview of sub-heading 7325.10 as per the HSN Explanatory Notes and will therefore be classifiable as a part/component of motor vehicle, tractor parts, diesel engine parts e....

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....tings. They stated that these rough castings are to be further processed like turning, broaching, grinding, groove cutting, heat treatment, surface drilling etc. as required by the customers and till these processes are carried out, it cannot be considered as a machined casting. In this regard, they referred to the decision of Madras High Court in the case of Motor Industries Co. Ltd. v. Asstt. Collector of Customs, 1992 (62) E.L.T. 13 (Mad.) and CEGAT judgment in the case of Steel & Industrial Forgings Ltd. v. Collector of C. Ex., 1991 (53) E.L.T. 609 (Tribunal). The appellants further contended that since their castings were earlier classified as unmachined, their classification cannot be abruptly changed. The HSN Explanatory Notes etc. c....