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2019 (2) TMI 310 - HC - Central ExciseManufacture - marketability - Exemption to specified goods falling under Chapters 73, 84, 85, 86 and 87 - cast articles of Iron and steel - N/N. 223/1988-C.E. dated 23.06.1988 - denial of benefit on the ground that the castings/cast articles were subjected to boring, welding and gauging, which being applied to transform the rough castings into specific parts having specific dimensions as per the drawings and not merely to remove surface defects or removal of excess material which being not permissible process in terms of the proviso to the Notification. Held that:- The Tribunal glossed over the fact on record that the unit was under Self Removal Procedure (SRP) whereunder it is not mandatory for the department to verify physically each and every article before clearance. It was, therefore, incumbent upon the noticee to have placed for physical verification the impugned article. The Tribunal lost sight of the fact that the Adjudicatory Authority drew an example of “Armature Casing” and unmachined casting which was placed for verification whereon the benefit of Notification No.223/88 was granted. Tribunal glossed over the aspect that the entire supply was to the Railways of fully machined Railway components/parts and other Railway components/parts from the stage of melting and casting. It was the later components/parts which were found subjected to drilling and welding. The department duly established the twin test of “manufacture and marketability”. The department having discharged the burden, the onus shifted on the respondent to have contradict that the impugned cast articles which were marketed (to Railways) were not subjected to process of manufacturing. The fact situation in the present case as is evident from cogent material evidence since establishes the fact as to cast articles being subjected to manufacturing process as per drawing and design given by the Railways, the respondent is not benefited by the decision in Vasantham Foundry [1995 (8) TMI 190 - SUPREME COURT OF INDIA], where it was held that `rough unmachined cast iron castings’ will continue to be treated as declared goods under sub-item (i) of Item (iv) of the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959. The Tribunal having misread the entire evidence on record committed manifest error in reversing the order passed by the Commissioner, Customs and Central Excise, Indore - appeal allowed - decided in favor of Revenue.
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