2000 (8) TMI 450

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....are cleared under NIL rate of duty under Chapter 10 Procedures in terms of Notification No. 217/85-CE dated 8-10-1985 as amended. In the manufacture of crank shafts they also obtained forgings. While the forgings used in the manufacture of crank shafts cleared on payment of duty are eligible for exemption under Notification No. 217/86, the Assistant Collector decided that the forgings used in the manufacture of crank shafts cleared under Chapter 10 Procedure at NIL rate of duty are not entitled for the said exemption under Notification No. 217/86, accordingly, demanded differential duty for various items in terms of the orders-in-original. The same were contested by the appellants before the Commissioner (Appeals) and the Commissioner (Appe....

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....tage. The forgings or forged crankshafts being goods different from raw materials and being goods having a distinct name as forged parts of machinery, are to be treated as finished goods as for as they are concerned, although they are required to be subjected to further processing for manufacture of crankshafts (component parts of machinery). The forged parts attract duty at specific rate, under relevant notification, whereas the finished crankshafts attract, ad valorem rate of duty under the relevant heading. Moreover, the forged crankshafts/forgings are also cleared as such from factories manufacturing such forgings on payment of duty. Hence they have a distinct, identity as finished goods (irrespective of classification) with distinct ta....