D.C. Mandal, Member (T)

1. In this appeal, which was originally filed as a Revision Application before the Central Government, the appellants have prayed that a consignment of rough machined ram forgings for manufacture of pneumatic power hammers imported by them may be re-assessed @ 40% ad valorem under heading 84.45/48 as against the original assessment under heading 73.04/06(2) of the Customs Tariff Act, 1975 @ 60% ad valorem plus 15% ad valorem plus countervailing duty at Rs. 165/- per M/Ton under item 26 AA of CET. They have stated that the forgings were hardened at 900°C/600°C and quenched and tempered. These were subjected to rigorous test for chemical compositions, ultrasonic test for rough machining, izod impact test (or charpy test) and for tensile strength. The forgings were made from ingots large enough to have a minimum reduction of 3 to 1 on the ram head. They have been forged into shape and rough machined to very close tolerances and as such acquired the specific shape and characteristics of the rams. The dimensions are very close to the finished articles. They have further stated that the cost of rough machining does not exceed 20% of the C.I.F. value.

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