1986 (10) TMI 252

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....lling under Tariff Item 50 of the First Schedule to the Central Excises and Salt Act and why duty should not be demanded from them on that basis in respect of their manufacture and clearances for the years 1973-74 to 1976-77. The Company replied denying that the said goods fell under Tariff Item 50 CET. On adjudication the Assistant Collector, under order dated 19-9-1979, rejected the case of the Company and directed the Company to take out a licence and submit classification list. He authorised raising of necessary demands of duty and imposed a penalty of Rs. 50/-. On appeal the said order was set aside by the Appellate Collector of Central Excise, Calcutta under order dated 18-8-1980. Subsequently the Central Government issued notice on 1....

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....coils and since flux coating will come off the wire when it is coiled, the wires would not be electrodes. In seeking to review this order the notice of the Government proceeded on the following basis : "On examination of the case records, the Central Govt. is tentatively of the view that the order of the Appellate Collector of Central Excise, Calcutta, is not proper, legal and correct. It is found that the product manufactured corresponds in respect of its chemical composition, nature of coating etc. to those of a type of welding electrode finding specific application in gas metal arc welding of steel and for such specific application the product might find use welding electrodes. Further un-coated wires as manufactured by the manufactur....

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.... electrodes, the entry would have read, for instance, "welding materials" instead of the description specifically being confined to electrodes (be they of all sorts) envisaging welding with the use of electricity." The said observations would equally apply to the present case also since even with reference to the metallizing wire manufactured by the respondents the use thereof, as noted by the Asstt. Collector himself in his order (in the passage extracted supra) is to fire that wire through a gun, the wire getting melted on emerging through the nozzle and thereupon being sprayed on the object to be coated. In this process also no electricity passes through the wire and the melting is not by use of electricity but by use of flames produc....