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On the other hand, we have an opinion of one of the Appellate Collectors late Shri M.G. Vaidya and quoted in one of the impugned orders dated 15-1-1982 (subject matter of A. No. 1555/82) as follows :-
"Customs have classified by taking recourse to Rule 2(a). It is mandatory. It is not a permissive rule offering an option to an importer or to the Customs. The principle of this rule has to be applied to every single article. Now the question is what exactly is meant by the essential character of the complete or finished article. One has to identify from the incomplete or unfinished article certain processes or machining impart essential operational features of a finished article? Any educated citizen who has an inquiring mind and observant eyes will easily be able to identify almost every rough forging as the starting point of a finished article. If such ability to identify were to be treated as essential character then nothing will be left to be assessed as rough forgings/shapes. One must therefore accept that essential character is not the same thing as ability to identify a rough forging as the starting material required for the making of a complete and finished article."

6.1 He further relies on a Trade Notice of the Vadodara Collectorate No. MP/31/87 dated 4-3-1987 defining the scope of essential character in respect of iron and steel castings. Relevant para of the Trade Notice is given below :-

"In this connection, Board has clarified that the important conditions to be satisfied connecting interpretative Rule 2(a) for classification of incomplete and finished articles are that the articles must have the essential character of the complete or the finished articles which could, inter alia, be judged with reference to the functional aspect, physical and degree of completion of the product. Viewed in this context, castings in which only surface defects or excess material have been removed may not acquire a stage at which it must be said to have the -essential character of the complete or finished machinery part. However, as per interpretative Rule 1, the classification shall be determined according to the terms of the headings, and in this case there is a specific Heading 73.07 covering all iron and steel castings not elsewhere specified in Chapter 72 or 73.

9. We have carefully considered the pleas advanced on both sides. We have already held that the true ratio of the Larger Bench of the Tribunal is that no general principles for determination of essential character of an article in terms of interpretative rule 2 (a) can be laid down. Facts and circumstances of each article have to be looked into to grasp the essential character of that article. Therefore, the citations made by either side in respect of specific articles would not be of relevance in determining the essential character of synchrocones for the purpose of assessment of the imported forgings in the instant case.

[Emphasis supplied].

12. Therefore, it appears that function of an article is one of the most important criterion for determining the essential character of an article as pointed out by the learned advocate for TELCO that function of synchrocone is to serve the dual purpose of a clutch as well as a gear. This dual purpose cannot be served by the product as imported. It, therefore, follows that the imported product does not have the essential character of a complete article synchrocone.

12.1 As regards the concept of 'point of no return' laid down by the Collector of Customs, Bombay to determine whether an incomplete or semi-finished article has acquired the essential character, we are of the view that this would lead to anomalies. It is well-known that forgings or castings of specific articles can be completed into finished articles only of which they are forgings or castings. If the test laid down by the Collector of Customs, Bombay is accepted then all castings and forgings would be treated as having reached a point of no return since they could be finished or completed only into the predetermined article. In other words, the Tariff entries relating to forgings or castings would become redundant and they would have all to be assessed, according to the test laid down by the Collector, as components of machinery of which they are forgings or castings.