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1992 (2) TMI 85 - SC - Central ExciseWhether cylinder liner manufactured by the appellant out of iron casting identifiable as machine part was exigible to duty under Tariff Item No. 68 or it continued to be iron casting and thus exempt under Notification issued under sub-rule (1) of Rule 8 of Central Excise Rules? Whether the authorities were precluded from issuing notice and adjudicating if the cylinder liner was a machine part, even though for an earlier period the classification list claiming it as iron casting, thus exempt, had been approved? Held that:- The Tribunal in the circumstances was justified in recording the finding that by the time the goods cleared from factory they had ceased to be casting, and had assumed the character of fully machined cylinder liner or fully machined or proof machined cylinders which were identifiable as such. Since duty under Excises and Salt Act is leviable on manufacture of goods produced the cylinder liner became exigible to duty under Entry 68. Once the Tribunal found that cylinder liner ceased to be cast iron it is obvious that the department could not be precluded from levying duty on it subject to the law of limitation. Since show cause notice which resulted in these proceedings was for a period other than for which proceedings had been dropped, it was not review as urged by the learned counsel for appellant. Thus if an item was found dutiable then the department could not be prevented from levying duty on it because it had earlier approved classification as there is no estoppel against statute. Appeal dismissed.
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