TMI Blog2000 (6) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... e sleepers, tubes and pipe fittings, parts and accessories of machines, motor vehicle parts etc. classifiable under Chapters 73, 84 and 87 respectively of the CETA. They also held Central Excise L-4 licence w.e.f. 30-6-1992 onwards for the manufacture of these excisable goods. On collection of intelligence report, it revealed that they had been wrongly availing concessional rate of duty under Notification No. 223/88 dated 23-6-1988. The scrutiny of their classification list for MCI/SGCI inserts filed by them during the period 4-11-1988 to 1-3-1989 also revealed that they projected their products as unmachined iron castings or unmachined cast articles of iron covered by sub-heading 7302.90 of the CETA and claimed exemption from payment of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty benefit in terms of Notification No. 223/88 dated 23-6-1988. The Collector, however, did not agree with their contention and observed that the inserts manufactured by the appellants did not qualify for the concessional rate of duty in terms of Notification No. 223/88. He however, dropped the duty demand against them on the ground that the demand was time-barred, but regarding the availability of benefit of Notification No. 223/88 the Collector categorically observed that the same was not available to their product (insert castings) through the impugned order. 5.The appellants have come up in appeal. 6.We have heard both the sides. 7.At the very outset, it may be mentioned that the impugned order being in favour of the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solely to protect products from rust or other oxidation, to prevent slipping during transport and to facilitate handling for example, paints containing an active anti-rust pigment, such as red lead, zinc powder, zinc oxide, zinc chromate, iron oxide (iron minium, jewellers rouge), and non-pigmented coatings with a basis of oil, grease, wax, paraffin wax, graphite, tar or bitumen; (d) removal of small portions of the metal for testing purposes; and (e) removal of surface defects or of excess material by grinding, chipping, filing or proof machining provided that in both the cases there is no change in the form of the product. The appellants did not satisfy these conditions and for that reason the benefit of this notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concrete sleepers. The Collector in para 2.7 of the impugned order, has categorically recorded the findings that the process adopted by the appellants was quite major which converted the rough castings into inserts in order to make them of specific dimensions and designs for their use in the Railway sleepers. This process according to the Collector was not permissible for claiming concessional rate of duty on the casting inserts under the notification in question. There exists no cogent reason to disagree with these findings of the Collector which had been recorded by him on the strength of the material on record. The inserts having been subjected to machining and surface treatment so as to make them prefect inserts of the dimensions, desig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts of the present case. 112.In the second case, it has been rather observed by the Tribunal that "milling, drilling and boring processes carried out on rough castings contribue to their finishing or change in form and go beyond mere removal of surface defects or excess metal. Therefore, the benefit of Notification No. 223/88 was not available." The ratio of the law laid down in this case goes against the appellants. In the third case the Tribunal has only ruled that inserts used as a raw material in the manufacture of concrete sleepers, subjected to the processes of annealing in the oil fired furnace, fettling and removing extra burns by grinding etc. did not become any one of the specified materials named in Heading 73.02 of the CE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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