2000 (11) TMI 679

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....atches, cases and other parts. When the item is received for gold plating, is no longer usable as such, the same is being returned in its depleted condition to the Jewellery Division for refurbishing, re-charging to make it an usable 'target' once again. The question that arises in this appeal is whether this movement of the depleted unusable target back to the Jewellery Division should be classified under Heading 7101.80 and duty at the rate of 20% be recovered thereon under the provisions of Rule 57F(4) and/or the removal should be considered to be without involvement of any duty under the provisions of Rule 57 F(3) (as the Rules stood at the relevant time). 2. The Revenue has taken the following grounds in their present appeal : ....

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....of gold under Heading No. 7101.80. As per Rule 57F the inputs in respect of which credit has been taken may be used (I) in or in relation to the manufacture of final product or shall be removed from the factory for home consumption or for export. In the present case M/s. TIL have been adopted both the Rules 57F(1)(i) and 57F(1)(ii) by using the inputs in the manufacture of final product as well as by removing them from the factory for home consumption. Since the inputs gold targets received from jewellery division had undergone some process at the watch division of M/s. TIL, the procedure adopted by M/s. TIL to clear the same under Rule 57F(1)(ii) appears to be not correct and the product is classifiable as waste and scrap of Gold att....