TaxTMI 
TaxTMI 
1990 (3) TMI 69
X X X X Extracts X X X X
X X X X Extracts X X X X
.... solidified moulten metal in refractory channel leading to casting or ingot mould. The Tribunal (Customs Excise and Gold Control Appellate Tribunal) found that since they are found in narrow channel and they are not of any pre-determined size or devised for producing solidified material for any particular use they could not be considered as ingots. They were held to be scrap. And the claim of exemption or concessional rate of duty was not accepted as it could not be extended to scrap. Tariff Item 26 of the Schedule to the Act during relevant period read as under : "Steel ingot including steel melting scrap." From March 1969 onwards various notifications were issued exempting or levying duty on concessional rate on steel ingot manufacture....
X X X X Extracts X X X X
X X X X Extracts X X X X
....amely for rolling, their clearance as ingots was in accordance with law and the notices issued for short levy were liable to be discharged. For the defective one, that is not fit for rolling, it was claimed that it was melted as scrap and since it was produced out of steel melting scrap no manufacturing activity could be said to be involved in it and it did not attract any duty. Learned counsel urged that steel melting scrap attracted duty only when it was produced out of material other than melting scrap for instance, iron ore etc. He submitted that excise duty on Runners and Risers could be charged only if they were taken as ingots and not as steel melting scrap. Reliance was placed on clarification issued by Ministry of Finance in Januar....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is that dispute does not survive after 1983. 5. What is apparent is that leviability of duty on Runners and Risers as covered by Tariff Item No. 26 was not free from difficulty. The Board, the Government and even the department by and large was clearing these items as scrap entitled to benefit of notifications exempting or levying duty on concessional rate on item covered by Tariff Item No. 26. Even in the State of Punjab it was cleared for some time till dispute arose. Although it would not operate as estoppel but rule of fairness is yet another principle which is well-settled and precludes public bodies, specially the government departments from re-opening such matters which were taken to be settled due to its actions. Further from peru....