TaxTMI 
TaxTMI 
2017 (2) TMI 766
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....captively consumed for manufacture of pumps. 15 periodical show cause notices were issued to WPPL for the period April 1993 to December 1998 demanding duty on the castings of cast iron and gun metal manufactured and consumed captively for product ion of pumps which are exempted. It was sought to deny Notification No. 217/86-CE dt. 2.4.1986 and Notification No. 67/95-CE dt.67/95-CE. Another show cause notice was issued for the period January to March 1999 demanding duties on such castings. The Dy. Commissioner adjudicated the 15 show cause notices and classified the items made out of cast iron under Chapter Heading 73.25 and those manufactured out of gun metal under Heading 74.19 by a separate order. The Dy. Commissioner quantified and confi....
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....he Assistant Commissioner had dropped the demand of 15 show cause notices in the second round of litigation M/s. WPPL filed a refund claim of Rs. 10,99,245/- deposited by them under protest. Refund of Rs. 4,41,366/- pertaining to the cast iron and castings was sanctioned the balance was not sanctioned. Aggrieved by this order M/s. WPPL filed appeal before Commissioner (Appeals), who directed the adjudicating authority to grant refund pertaining to gun metal castings. Aggrieved by this order, Revenue filed appeal No. E/2178/2010 before Tribunal. 1.1. 16 show cause notices were for the period January to March 1999 was confirmed by the Assistant Commissioner. Aggrieved by the said order of Commissioner (Appeals) M/s. WPPL has filed appeal N....
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....f machining and (f) surface coating. As regards the period from 1.3.88 there was no generic heading of casting and the metal chapters were fully aligned with HSN. It was observed that heading 7325 HSN has a restricted scope covering only such cast articles covered by Sec. XV as had not been specified in other headings of Chapter 72 & 73, together with semi-finished articles having essential character of finished articles which are to be treated as finished articles by virtue of Rule 2(a) of the Rules of interpretation. Castings for other articles like machine parts falling under Chapter 84, 85, 86, 87 etc. would not be covered by Chapter 73 in view of Section note 1(f), (g), (h) to Section XV, as also HSN explanatory Notes for heading 73.25....
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....d on the Explanation VI to the SSI exemption Notification No. 1/93-CE dt. 28.2.1993 which is reproduced below: "Explanation VI - Where any specified goods (hereinafter referred to as inputs are used for further manufacture of specified goods within the factory of production of inputs, the clearances of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification." He argued that since the goods have been captively consumed and they are entitled to SSI exemption no demand can be made on them as the turn over of captivley consumed goods cannot be included in the aggregate value for the purpose of claiming benefit of Notification No. 1/93-CE. The Ld. Co....
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....ommissioner of Central Excise 2013 (296) ELT 507 (Tri. Del.). He argued that the castings, as they emerge, need grinding, fettling and proof machining before they became usable as parts. In such circumstances the castings as they emerge from the castings process needs to be classified under Heading 7419 and only after these procees are completed and goods become ready for use they became classifiable under heading 84.13. The Ld. AR also relied on decision of Tribunal in the case of SAZ Metals Vs. Commissioner of Central Excise, Pune-II 2000 (115) ELT 365 (Tribunal) and Luthra Engineering Works Vs. Commissioner of C. Ex., Jamshedpur 1999 (108) ELT 559 (Tribunal). 3.1. Ld. AR further argued that the benefit of SSI exemption is not availabl....
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....captively. In this regards Explanation VI of the Notification become relevant the said explanation reads as follows: "Explanation VI - Where any specified goods (hereinafter referred to as inputs are used for further manufacture of specified goods within the factory of production of inputs, the clearances of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification." Thus irrespective of the value of such captive clearance the said clearances remain duty free if they are consumed captively. M/s. WPPL has clearly shown that they have been claiming the said SSI exemption during that period and no challenge to that was made. In fact the order in orig....