1986 (9) TMI 167

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....of duty on iron casting if it is made out of raw materials specified in the notification alone. The raw materials mentioned in the notification do not include M.S. Scrap which has also been used by the appellant in the manufacture of the said iron castings. It has further been stated by the adjudicating authority that the addition of steel scrap in the list of raw materials was made by amendment of the said notification w.e.f. 1-3-1984. vide notification 38/84. 2. On the other hand, learned consultant has submitted that the major raw material used in the manufacture of iron castings is old iron scrap which is mentioned in the list of raw materials in notification 208/83. Addition of 20 to 30% of steel scrap is used only to improve t....

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....riff Item 25 (16) (i) would be exempted from duty, even if it is manufactured wholly out of steel scrap falling under Item 25 (3) (ii) the amending notification 38/84 dated 1-3-1984 does not take away the effect of the earlier notification where iron castings were manufactured out of raw material predominantly consisting of iron scrap falling under Item 25 (3) (i). Apart from the foregoing plea, the learned consultant also submitted that the demand would be partly time barred as it has been raised after six months and it was known to the department that they had been manufacturing iron castings using M.S. scrap as well on the basis of earlier notification 64/72. Further, he submitted that there was no case for imposition of penalty as th....