Order No. A/76/88-NRB. Case: Rathi Ispat Limited Vs Collector of Central Excise, Meerut. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Order No. A/76/88-NRB |
| Counsel | For Appellants: Mr. Jaswant Singh, Consultant and For Respondent: Miss Renuka Mann, S.D.R. |
| Judges | Shri G.P. Agarwal, Member (J) and P.C. Jain, Member (T) |
| Issue | Central Excise Act |
| Citation | 1988 (35) ELT 486 (Tribunal) |
| Judgement Date | January 01, 1988 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
P.C. Jain, Member (T), (North Regional Bench At New Delhi)
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Short question involved in this appeal is whether duty paid on Cast Iron moulds under Central Excise Tariff Item 68 would be allowed to be set off under Notification 201/79, dated 4.6.1979 even if the cast iron moulds had been used for the purpose of moulding and scrapped after such use. These scrapped cast iron moulds are used in the manufacture of steel ingots by the appellants.
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Lower authorities below have held that such set off duty is not available in terms of Section 201/79 on the ground that what is being used by the appellants in the manufacture of steel ingots is not new cast iron moulds; but only a scrap; such cast iron moulds after having been scrapped do not continue to fall any longer under Tariff Item 68, but they fall under Tariff Item 26.
The appellant on the other hand contends that scrapped cast iron moulds continued to remain cast iron moulds falling under Tariff Item 68 and therefore, duty paid on such cast iron moulds is entitled to be set off against the duty payable on the finished tools in terms of Notification 201/79.
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We have carefully considered the pleas advanced from both sides. We do not agree with the plea of the appellant that scrapped cast iron moulds after they have become unfit for the use of moulding purposes continue to remain Cast Iron moulds falling under Tariff Item 68. Duty, no doubt, was initially paid on cast iron moulds under Central Excise Tariff Item 68. Thereafter, the cast iron moulds were used for moulding of steel ingots. After such use of cast iron moulds, these become unfit and they are used merely as scraps in the manufacture of steel ingots.. The purpose of these scrapped cast iron moulds is only for the recovery of metal contained in such moulds; the original purpose of moulding the steel ingots no longer remains. It is, therefore, apparent that what is being used in the manufacture of steel ingots is not...
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