1993 (12) TMI 136

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in-Original No. & date Duty demanded Rs. 107/93 (MDU) C .No. V/73/3/65/92 (Order No. 42/93) dated 8-6-1993 795/- 108/93 (MDU) C. No. V/76/3/64/92 (Order No. 37/93) dated 17-5-1993 3,51,157/- The appellants are manufacturing Aluminium Alloy Anodes falling under Chapter Sub-heading 7616.90 of Central Excise Tariff and availing exemption under Notification No. 180/88 dated 13-5-1988. The appellants use M.S. Inserts made out of M.S. Rods in the manufacture of Aluminium Alloy Anodes. By the impugned orders, the Assistant Collector has held that the said Aluminium Alloy Anodes are not eligible to exemption under Notification No. 130/88 ibid as these have been manufactured not out of the goods falling only under Chapter 76,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....id. (v) No casting can be made out of pure Aluminium. If made, that will be Aluminium ingot only. Since the casting is done out of Aluminium Alloy, and such Aluminium Alloy being an item of Chapter 76 only, the conditions of notification are fulfilled. (vi) Aluminium cannot be welded to Mild Steel and therefore M.S. Core necessarily has to be inserted into the Aluminium Alloy Anode so that fixing by welding is possible. (vii) M.S. Rod or Pipe so used has no other function except lending weldability. This is either bent or twisted according to the area where it is to be fixed. (viii) The M.S. Inserts (rods or pipes) are purchased from the open market and hence they had already discharged duty liability. (ix....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....m Alloy Anodes out of Aluminium in admixture with other metals such as Zinc and Indium would render the same ineligible for the exemption under notification ibid. As per the Chapter Notes, the Aluminium Alloys in which Aluminium predominates by weight over each of the other elements, are covered in the same Chapter. Further, the notification does not stipulate that the cast articles of Aluminium are to be manufactured exclusively and only from the goods falling within Chapter 76. In the case of Guest Keen William Ltd. referred above, the Tribunal held that the Steel ingots manufactured from specified materials in admixture with other materials like Ferro-Silicon, Ferro-manganese, Ferro-Molybdenum etc. in small amounts, because of technologi....