TMI Blog1992 (2) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat on the first stage it is an iron casting which is exempt under Item No. 25. Nor there is any dispute that at the third stage it is an excisable commodity. The only dispute is if at the second stage when it was supplied by the appellant to the Railways it could be subjected to duty. According to the appellant till its final processing by the Railways it did not become a machine part. It continued to be iron casting. It is claimed that merely because it was supplied to Railways or that it became identifiable as a machine part no duty was attracted as no excisable commodity came into being. Reliance was placed on Tata Iron Steel Co. Ltd. v. Union of India, 1988 (3) SCR 1025 = 1988 (35) E.L.T. 605 (S.C.). It was urged that this Court havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, 1964, exempted from the payment of the excise duty leviable thereon." 5. In the classification list exemption was sought on cylinder liner by describing it at serial No. 4 as under : "4. Cylinder liners to Part No. 10123416 which is not identifiable part in that it is partially machined only and not ready for use." 6. The description of the goods as, partially machined, does not appear to be correct. The Tribunal found that contract in pursuance of which the goods were manufactured was for the supply of, 'fully machined cylinder liner'. And in absence of any material it was obvious that the Railways would not have accepted the cylinder unless it tallied with the specification. There was no dispute before the authorities that first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners fully machined and after first honing as supplied by the suppliers in the engine without further processing (chrome-plating and honey combing) howsoever uniform and smooth the cylinder liners supplied by the manufacturers may be." 8. In our opinion it does not help the appellant. In Tata Iron Steel Co. (supra) it was admitted in the letter of Railways that what was supplied was rough machined or forged conditions. But from the letter extracted above it is clear that what was supplied by appellant was fully machined cylinder liner. That was the contract as well. The Tribunal's finding that the contract was for supply of, 'fully machined cylinder liners' thus stands supported even by the letter of Railways. The Tribunal in the circum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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