Foundry Grade Iron [Chapter 72, 73] - Central Excise - 139/3/87-CX.4

Foundry Grade Iron [Chapter 72, 73] Letter No. 139/3/87-CX.4 Dated 23-7-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Foundry Grade Iron [Chapter 72, 73] It has been represented to the Board that excise duty exemption presently admissible to foundry grade iron with a phosphorous content of 0.2% and above (vide Serial No. 2 of the Table annexed to Notification No. 54/86-CE, dated 10-2-1986) has been denied in the case of a factory clearing molten iron of foundry grade. 2. It had earlier been viewed that exemption to pig iron may not include molten iron. On re-examination of the matter it is observed that the exemption in this case is applicable to 'foundry grade iron' with a phosphorous content of 0.2% and above and notification does not state that foundry grade iron has to be in solid form only. Clearances of iron in molten form is reportedly done to conserve energy which would be required if molten iron is first solidified into pig iron and then cleared from the factory, and therefore, it is converted into molten form again before the same is used in the manufacture of spun pipes. The question, therefore, is whether there is any difference between molten iron of the same composition as foundry grade iron of the variety which was enjoying exemption before the new Tariff, and which exemption is still in force. The Board is of the view that it would appear proper to hold that the exempted variety of foundry grade iron, as envisaged under the aforementioned notification, would also include molten iron of the same composition with reference to which the exemption is allowed.