1987 (10) TMI 54

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....ised as Small Scale Industries by the State Government authorities and they get their requirements of pig iron from them. The Assistant Collector, Central Excise, by his letter dated 21-8-1981 informed the petitioners that because pig iron is also used as a raw material in the manufacture of iron castings produced by them they are obliged to take L4 licence under the Act, as the product is liable to excise duty under Item 25 - Schedule I of the Central Excise Act. The petitioners have filed writ petition questioning the correctness of the view of the Assistant Collector and his jurisdiction contending that the Iron castings manufactured by them are not liable to Excise duty and that they are not obliged to take out L4 licence. The writ peti....

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....WING NAMELY :- (i) .......... (v) All other steel castings, not otherwise specified." After amendment Item 26AA is omitted. Item 25 is made very comprehensive. The relevant extract from Item 25 reads as follows : "25. Iron and steel, and products thereof, the following, namely :- (1) Pig iron, cast iron and spiegeleisen in pigs, blocks, lumps and similar forms; and molten iron. (2) to (15) XXXXXXXXX (16) Castings of iron or steel, not otherwise specified : (i) of iron (ii) of steel ......................." 5. The exemption Notification No. 74/62, dated 24-4-1962 under Rule 8 reads as follows : "Exemption to iron in any crude form produced from old iron or steel scrap : In exercise of the powers conferred by sub-rule (1) of Ru....

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....s are liable to duty being different commodities from the raw material used. According to him, the exemption notification also cannot help the appellants as pig iron is used by them as raw material, while exemption is restricted to only those who use old iron or scrap mentioned in the notification. 8. The language of Items 25 and 26AA prior to 1-8-1983 indicates that iron in any crude form (including pig iron and iron casts) is treated as one commodity in distinction with the products of iron which are mentioned in Item 26AA. It cannot be disputed that the pig iron and old scrap used by the apellants has already suffered Excise duty. The iron castings are treated as iron and not a product of iron. In view of the language of Item No. 25 and....