TaxTMI 
TaxTMI 
1994 (1) TMI 284
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....lector (Appeals), Calcutta by his order dated 23rd April, 1993. The Asstt. Collector had passed two different orders-in-original in respect of the appellants denying the benefit of Notification No. 178/88-C.E., dated 13-5-1988 and also had held that as the appellants had used zinc as one of the inputs which do not fall within Chapter 74 of Central Excise Tariff Act, 1985. The appellants had urged before the Collector that the Notification in question nowhere impliedly suggested that in order to avail the benefit granted by the said notification, the concerned sheets/circles are to be manufactured exclusively out of the prescribed inputs and addition of any other input in admixture shall be a bar in the matter of availing the benefit. ....
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....f zinc in a small quantity is a technical necessity and an essential ingredient which get support of technological definition of "Copper and Articles thereof, Chapter 74". It was further submitted that such definition as per Explanatory Notes on Harmonized Commodity Description and Coding System also supports thereto. Ld. Advocate referred to the order-in-original dated 7-7-1982 passed by the Asstt. Collector who had granted the benefit of notification to them and therefore, the subsequent order is not justified. Referring to the notification in question, the ld. Advocate pointed out that the concession was available to copper circles and sheets provided such sheets and circles are made from `copper and articles thereof' falling under....
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.... had taken a view that the benefit of Notification No. 119/66 is available even if zinc is mixed with old scrap or duty paid virgin copper. He relied on Note 3 of Section XV pertaining to Chapter 74 which stated "the Copper Base Metal alloys which may be classified with copper include a copper zinc base alloys (Brasses) in variable proportions of Copper and Zinc e..g. common brass........." He also referred to the Notification No. 76/85-C.E., dated 17-2-1985 which also stated that the expression `Brass' means a Copper alloy having a Zinc content of 5% or more by weight. Ld. Advocate also drew strength from the circular dated 20-2-1982 issued by Central Board of Excise & Customs which [has] clarified that addition of other metals....
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....ing entry in column (2) of the said Table, from so much of the duty of excise leviable thereon which is specified in the said Schedule, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table.           THE TABLE S. No. Heading No./Sub-heading No. Description of goods Rate 01. 7401.10 7401.20 74.02, 74.03 Copper mattes, cement copper (precipitated copper); unrefined copper; copper anodes for electrolytic refining; refined copper and copper alloys, unwrought; and cast circles of copper. Nil 02. 7407.12 Wrought bars and rods of brass Nil ....
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.... Notification No. 178/88-C.E., dated 13-5-1988)." On a perusal of this notification, it is clear that there is no dispute with regard to the notification the final product. The only dispute raised by the lower authorities with regard to the term `copper'. The ld. Asstt. Collector has proceeded on the basis that the term `inputs falling within Chapter 74' of the notification implies within order to be eligible for availing exemption under the said notification, the said goods are necessarily required to be manufactured exclusively out of inputs falling within Chapter 74. Ld. Asstt. Collector has proceeded that the interpretation of the notification has to be done strictly and by such strict application, the benefit cannot be extended to....