TMI Blog1964 (10) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... he central excise tariff as item No. 26AA in the First Schedule to the Central Excises and Salt Act, 1944. Sub-item (iv) of Item 26AA was in the following terms :- "(iv) Pipes and tubes (including blanks therefor,) all sorts, whether rolled, forged, spun, cast, drawn, annealed, welded or extruded. Five per cent ad valorem plus the excise duty for the time being leviable on pig iron or steel ingots, as the case may be." Now, the petitioners manufacture certain pipe fittings or Specials such as tapers, tees, bends, Y junctions, bell mouths, sleeves, shoes, collars, etc. By a letter dated 6th November 1962, the Inspector of Central Excise informed the petitioners, on the authority of a communication received fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on the part of the petitioners as well as the respondents with regard to the basis on which the Specials or pipe fittings could possibly be assessed under Tariff Item 26AA(iv). Although the pipe fittings have been assessed in the demand notices as if they were directly included in the category of "pipes and tubes" specified in Tariff Item 26AA(iv), it is the case of the respondents that these pipe fittings are not pipes or tubes by themselves. What the respondents say is that, during the manufacture of these Specials or pipe fittings, the petitioners had prepared pipes which were subsequently processed into these pipe fittings or Specials and that the petitioners are chargeable to excise duty, not on the value of the Specials or pipe fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of the pipe fittings, but on the value of the pipes that went into their manufacture. This admittedly has not been done in the case of at least some of the pipe fittings. 5.Accordingly, the demand notice dated 12th December 1962, the appellate decision of the first respondent dated 2nd March 1963 and the demand notice dated 26th March 1963 (being parts of Exhibits C, D and E to the petition) are set-aside. The respondents will proceed to re-assess the excise duty payable by the petitioners under Tariff Item 26AA (iv) after giving them an opportunity to show that any of the Specials or pipe fittings were not prepared from pipes, and, after assessing the value of the pipes, if any, which had gone into the manufacture of the Specials or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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