Tariff classification controls deemed credit eligibility for aluminium castings, and manufacture to specification does not expand the scheme.

Aluminium castings manufactured to specification for junction boxes were held not to fall within Heading 76.01, which covers unwrought aluminium such as ingots, billets, wire bars and wire rods. As the goods were instead treated as articles of aluminium under Heading 76.16, they were outside the scope of the Deemed Credit Order dated 01.06.1989. The fact that the castings were used in manufacture and had been cleared by exempted units did not bring them within the deemed credit scheme. Credit was therefore not available on the impugned castings.

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Issues: Whether aluminium castings received by the assessee were classifiable under Heading 76.01 so as to qualify for deemed credit under the Deemed Credit Order dated 01.06.1989, and whether the denial of deemed credit was justified.

Analysis: Deemed credit was available only where the material fell within Heading 76.01 covering unwrought aluminium such as ingots, billets, wire bars and wire rods. The castings in question were not of that description and were instead treated as articles of aluminium under Heading 76.16. They were also manufactured to specification for junction boxes and had been cleared by exempted units, which further supported exclusion from the deemed credit scheme.

Conclusion: The aluminium castings did not fall under Heading 76.01 and were ineligible for deemed credit. The denial of credit was upheld against the assessee.

Final Conclusion: The appeal failed on classification and eligibility, and the assessee was not entitled to deemed credit on the impugned aluminium castings.

Ratio Decidendi: Where the goods do not fall within the specified tariff heading covered by a deemed credit scheme, credit cannot be claimed merely because the goods are used in manufacture or are made to specification.

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