1998 (4) TMI 273

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....H. Joglekar, Member (T)]. -  The assessees manufactured track shoes which were component parts of battle tanks and cleared them to the Defence Factories in terms of Notification No. 165/87-C.E., dated 10-6-1987 following the procedure set out in Chapter X of the Central Excise Rules, 1944. The material was later subjected to rigorous tests by the buyers during which some of the material was ....

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....She also observed that what was destroyed was a small percentage of the total and set aside the lower order. The Revenue is in appeal before us against this order. 2. Shri S. Nunthuk, learned JDR reiterating the submissions in the memorandum claimed that the goods were cleared under Chapter X Procedure and, therefore, it has to be held that they were fully manufactured. He also said that the....

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....quality control was a mandatory clause, the goods could not be held to be fully manufactured until they were so tested. That ratio will hold good where the goods are tested in the factory of manufacturer before entry is made in the RG 1 Register before their clearance. Here the goods were fully manufactured and the quality control test was for acceptance as parts and not for determination of wheth....