1998(11)LCX0141

IN THE CEGAT, COURT NO. III, NEW DELHI

Ms. Jyoti Balasundaram, Member (J) and Shri Lajja Ram, Member (T)

KOLHAPUR STEEL LTD.

Versus

COLLECTOR OF CENTRAL EXCISE, PUNE

Final Order No. 1154/98-C, dated 6-11-1998 in Appeal No. E/1917/94-C

CASE CITED

Shivaji Works Ltd. v. Collector — 1993(05)LCX0045 Eq 1994 (069) ELT 0674 (Tribunal) — Referred                                [Para 2]

Advocated By : Shri A.S. Bambhorikar, Consultant, for the Appellant.

Shri Satnam Singh, SDR, for the Respondent.

[Order per : Jyoti Balasundaram, Member (J)]. - The appellants who are the manufacturers of castings are aggrieved by the order of the Collector of Central Excise (Appeals), Pune, by which he has denied the benefit of Notification No. 40/85, dated 17-3-1985 to oxygen gas used in the manufacture of castings - the ground for denial is that while the notification is applicable to oxygen gas used in the manfacture of castings falling under Chapter 72 or 73 of the Schedule to the Central Excise Tariff Act, 1985, the classification of the castings manufactured by the appellants has been approved under other Chapters, namely, Chapters 84, 85, 86 & 87, and such classification has become final by the appellants by not filing any appeal against the same.

2.  We have heard Shri A.S. Bambhorikar, learned Consultant, and Shri Satnam Singh, learned SDR. The appellants seek to argue that it has been held by the Tribunal in the case of M/s. Shivaji Works Ltd. v. Collector of Central Excise, Aurangabad, 1993(05)LCX0045 Eq 1994 (069) ELT 0674 (Tribunal) - 1993 (049) ECR 0323 (Tribunal), that steel castings fall for classification under Chapters 72 & 73, and, therefore, the benefit of Notification No. 40/85 should be made available to the oxygen gas used by them in the manufacture of castings. However, we find that the lower authority has correctly held that the castings which have been classified under Chapters 84, 85, 86 & 87 had acquired the essential characteristics of machine parts and mechanical appliances, and the classification issue is not in dispute in the present procedings, and therefore, the benefit of notification is not available to the appellants. It is not that all castings have been held to be falling under Chapter 72 or 73. It depends upon the extent to which the castings have been worked; if they have already acquired the essential characteristics of machine parts/mechanical appliances, then such type of castings would be classifiable under Chapters 84, 85, 86 & 87. In the present case, the castings have already been classified under headings other than Chapters 72 & 73 and the classification of the castings has become final. We, therefore, hold that the Revenue has correctly denied the benefit of Notification No. 40/85 in the present case and uphold the impugned order. As a result, the appeal is rejected.

_______

Equivalent 1999 (106) ELT 192 (Tribunal)