TMI Blog1984 (4) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excises and Salt Act, 1944 (hereinafter call the Central Excise Tariff) at its factory at Rupnarayanpur. West Bengal. Appellants factory possesses Central Excise licence for manufacture of telecommunication cables. Telecommunication cables manufactured by the appellants are required to be sheathed for the purpose of preventing ingress of moisture in the cables by means of lead alloy, which is nothing but lead mixed with 0.85 % of antimony. Such mixing is done by melting lead with antimony. The appellants claim that lead itself contains certain percentage of antimony but for the purpose of increasing the hardness further, 0.85% of antimony is mixed with lead by the process of melting the materials. The appellants contended that this mix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11A of the Act). These show cause notices are the subject matter of Order-Original Nos 201-203 (27A) 82/Collr-62/92, dated 7-8-1982 passed by the Collector of Central Excise, Calcutta.) 3. Later another show cause notice dated 25-6-1982 (C. No.V. (27) (15) 148-CE/16928-30), similarly demanding duty amounting to ₹ 6,03,975.92 (basic ₹ 5,49,069.01 and S.E.D. ₹ 54,906.91) for the period 18-4-1981 to 25-5-1982 was also served on the appellants. This show cause notice is the subject matter of the Order - in-Original No. 229 (27A)/82/Collr-71/82, dated 13-9-1982 (Appeal No. 437/1982). 4. Another similar show cause notice dated 12-7-1982 C.No. V(27) 169-CE/82/17516D) calling upon the appellants to show against penalty and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal, Shri R.N. Bajoria, Senior Advocate for the appellants contended that mixing of 0.85% of antimony with lead to further harden it did not result in manufacture as no new article having distinct name, character or use came into existence. The product which came into existence by mixing antimony with lead still remained lead. The article is commercially not a different article from lead. He further argued that item No. 27A in the C.E.T. providing inter alia for levy of C.E.D. on lead unwrought including ingots, pigs, blocks, anodes, slabs, cakes and cast sticks was inserted in the C.E.T. by the Finance Bill, 1965. He further argued that the Central Board of Excise and Customs in its communication bearing F .No. 3/1/65-CX. III, dated 8-10-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was no manufacture as was clarified and borne out by the Memos and clarification mentioned above. Even if the Collector be correct in ignoring the Government of India s Circulars and the Trade Notices on the ground that as a quasi-judicial authority he was not bound to follow the same, he could not ignore Orders Nos. 223-224-B, dated 27-7-1982 communicated under F. No. 194/171-72/82-AU (8) on the appeals of M/s. Indian Base Metals Co. (P) Ltd., against Order No. 171 (26B) 81-Collr-25/82, dated 5-3-1982 and No. 170(27A) 81-Collr-24/82, dated 5-3-1982. These two manufacturers were job workers of the appellants and in respect of them the same Collectorate had earlier passed similar orders. The Central Board of Excise and Customs by its ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs at the level of Secretary and reconsidering the earlier Circular No. 138/10/79-CX. IV, dated 22-6-1981 stated that the notification under reference would apply to copper ingots etc., made from the various materials mentioned in the notification, even if other metals such as Zinc lead, tin or nickel have been added to it provided the copper contents therein predominates. Ministry of Law s advice was accepted by the Ministry of Finance. The circular, further applied mutatis mutandis in relation to goods specified in other tariff entries including T.I. 27A if in the manufacture of these goods other metals are also added as a technological necessity in combination with the base metals already specified in the tariff entries. It appears that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arsenical antimonial lead and high copper antimonial lead. The Board in para 31 of the order observed that the Government of India had taken a stand that such alloys would be covered by the respective item as Zinc or lead falling under item 26B or 27A of the Central Excise Tariff if the percentage of the respective base metal was more than 50% in the alloys. The Board further, observed that this naturally meant that since metal as well as its alloy were covered by the same item and sub-item of the C.E.T. there would be no manufacture of excisable, goods different from those which were used as raw material. The order reiterated the Government s declared intention to collect the duty only in cases were these metals in unwrought form were manu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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