Source : Webster's Revised Unabridged Dictionary (1913)

Chisel \Chis"el\, n. [OF. chisel, F. ciseau, fr. LL. cisellus,
   prob. for caesellus, fr. L. caesus, p. p. of caedere to cut.
   Cf. {Scissors}.]
   A tool with a cutting edge on one end of a metal blade, used
   in dressing, shaping, or working in timber, stone, metal,
   etc.; -- usually driven by a mallet or hammer.

   {Cold chisel}. See under {Cold}, a.

Chisel \Chis"el\, v. t. [imp. & p. p. {Chiseled}, or {Chiselled}
   (?); p. pr. & vb. n. {Chiseling}, or {Chiselling}.] [Cf. F.
   ciseler.]
   1. To cut, pare, gouge, or engrave with a chisel; as, to
      chisel a block of marble into a statue.

   2. To cut close, as in a bargain; to cheat. [Slang]

Source : WordNet®

chisel
     n : an edge tool with a flat steel blade with a cutting edge
     [also: {chiselling}, {chiselled}]

chisel
     v 1: engage in deceitful behavior; practice trickery or fraud;
          "Who's chiseling on the side?" [syn: {cheat}]
     2: deprive somebody of something by deceit; "The con-man beat
        me out of $50"; "This salesman ripped us off!"; "we were
        cheated by their clever-sounding scheme"; "They chiseled
        me out of my money" [syn: {cheat}, {rip off}]
     3: carve with a chisel; "chisel the marble"
     [also: {chiselling}, {chiselled}]

Source : Free On-Line Dictionary of Computing

CHISEL
     
        An extension of {C} for {VLSI} design, implemented as a C
        {preprocessor}.  It produces {CIF} as output.
     
        ["CHISEL - An Extension to the Programming language C for VLSI
        Layout", K. Karplus, PHD Thesis, Stanford U, 1982].