1998 (11) TMI 270 - AT - Central Excise

Summary

Issues:
1. Whether the appellants' job work amounts to manufacturing new goods.
2. Entitlement to benefit under Notification Nos. 214/86, 197/87, and 278/82-C.E.

Analysis:
1. The case involved the appellants obtaining castings for job work, such as removing excess material and drilling holes as per the principal supplier's specifications. The Department sought to levy duty on the resulting product as part of a bombshell component. The appellants argued that they did not manufacture new goods but only processed the castings as instructed, maintaining the original character. The lower authorities held that the appellants transformed the castings into bombshell components by machining and drilling, creating new goods subject to duty under Tariff Heading 93.06.

2. Regarding the benefit of Notification Nos. 214/86, 197/87, and 278/82-C.E., the lower authorities denied the appellants' claim under 278/82-C.E. and 197/87-C.E. on the basis that the goods were not manufactured in a Central Excise factory. The matter concerning Notification 214/86-C.E. was remanded to the Original Authority for further examination, as it was not previously considered. The appellate tribunal upheld the denial of benefits under 278/82-C.E. and 197/87-C.E. due to the appellants' factory not being considered a Central Govt. factory. The remand for Notification 214/86-C.E. was deemed appropriate since relevant facts were not on record, leading to the dismissal of the appeal.

In conclusion, the Appellate Tribunal affirmed that the appellants' job work resulted in the creation of new goods subject to duty. The denial of benefits under certain notifications was upheld due to the appellants' factory not meeting the criteria of being a Central Govt. factory. The remand for further examination of benefit under Notification 214/86-C.E. was deemed justified, ultimately resulting in the dismissal of the appeal.