TaxTMI 
TaxTMI 
2013 (12) TMI 28
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....the State of U.P. and the other unit in 24, Parganas (North), West Bengal. The dispute in this case is in respect of their Ghaziabad unit, wherein, in addition to submersible pumps, they also make parts thereof. Under Notification No.8/96-CE dated 23/07/1996 certain parts of submersible pumps falling under Chapter 84 are also fully exempt from duty, subject to condition that the same are used in the manufacture of submersible pumps in the factory of production. For manufacture of parts, the appellant make Copper Bronze Castings which are subjected to the process of Grinding, Fettling and Proof Machining. Some of the said castings without being subjected to the process of Grinding, Fettling and Proof Machining were being cleared to West Beng....
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.... notification and the same would also not be eligible for exemption under Notification No.67/95-CE, as the castings have been used in manufacture of the finished goods, which are fully exempt from duty. On this basis, three show cause notices were issued to the appellant for demand of duty amounting to Rs.17,90,502/-. 1.2 These show cause notices were adjudicated by the Assistant Commissioner by two order-in-original by which he confirmed the above-mentioned demands. 1.3 On appeals being filed before the Commissioner (Appeals), the Commissioner (Appeals) vide order-in-appeal No.739-742/1999 dated 30th August 1999 set aside the Assistant Commissioner's order and allowed the appeals holding that in view of interpretory Rule 2 (a), the u....
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....m the reply filed by the appellant as to what exactly the position is though the contention put forth before us is that in respect of some parts which are captively used within the factory on which no duty is paid while it is used at another unit of the factory elsewhere duty is already paid. Neither the orders made by the authorities are clear nor such a case is put forth before the tribunal and, therefore, to do compete justice in the matter we set aside the orders passed by the authorities and the tribunal and remit the matter to the assessing authority for fresh consideration in accordance with law. However, it is open to the appellant to file further reply to the show cause notices issued. The appeals are allowed accordingly." 1.6 T....
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....classifiable under Chapter 74, the department has to prove their marketability, as unless the castings are marketable, the same cannot be treated as excisable goods, that since the castings are not usable by any other person, the same cannot be treated as marketable, that there are no sales of these castings to any buyer and the only clearances of these castings are to West Bengal unit of the appellant, that in view of the Apex Court's judgment in the case of Bhor Industries Ltd. vs. CCE reported in 1989 (40) E.L.T. 280 (S.C.), the burden of proving the marketability is on the department for which no evidence has been produced and that in view of this, the impugned order is not sustainable. 4. Shri Sanjay Jain, learned DR, defended the i....
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....6-CE and the submersible pumps in which these parts are used also attract nil rate of duty. The dispute is only over the classification of copper bronze castings and question of levy of duty in respect of the same. If the appellant's contention that these castings have the essential character of parts of submersible pumps and are classifiable under sub-heading 8413.99, and hence the same would be fully exempt from duty and there would be no question of charging any duty on the same. However, if the castings are treated as something different from parts and, hence, classifiable under heading 7419.91, since the same have been used in the manufacture of parts of submersible pumps fully exempt from duty, which in turn have been manufactured of ....