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TMI Blog1992 (9) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned product without filing the classification list. A penalty of Rs. 25,000/- is also imposed. The facts of the case are that the appellants are engaged in the manufacture of excisable goods viz. cast articles of Iron and Steel (unmachined) which the department alleged are parts of machine falling under Chapter 84 or parts of railway bogies falling under Chapter 86 of Central Excise Tariff, 1985. In pursuance of intelligence escorts of preventive officers, Central Excise Headquarters, Indore visited the factory of the notice located at Industrial Estate, Pologround, Indore on 17-10-1988 and found that: (i) Cast articles of iron falling under Chapter 84 have been cleared by the noticee without issuing G.P. 1 and without payment of duty of excise. No statutory records prescribed under the Central Excise Laws have been maintained in respect of this product. (ii) Cast articles of steel falling under Chapter 84 or 86 have been removed by the noticees under the guise of other cast articles of steel falling under sub-heading 7325.20 of the CET. The noticees have paid duty of excise (Basic) and Rs. 220/- per M.T. on these products. (iii) Cast articles of iron and steel ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44. 2. The appellants had taken a stand while denying all the charges that they had filed two classification lists (a) 123/87-88 from 1-4-1987 for excisable goods falling under Chapters 72 and 73 and the same had been duly approved by the Assistant Collector, Indore, and it was duly checked by the Audit Parties in the month of June 88 and July 88. These classification lists cover the period from 1-4-1987 to 31-3-1988. Therefore, they stated that the allegation that they had not filed any classification list of the said excisable goods, effective from 1-4-1988 is hot based on facts. It was also contended by them that cast iron and steel were exempted from duty in terms of Notification No. 90/88 dated 1-3-1988. It was further contended that the excisable goods of steel alleged to be falling under Chapter 84 or 86 were in fact falling under sub-heading 7325.00 and were cleared on payment of duty under that chapter heading and were cleared during the period from 1-3-1988 to 22-6-1988. These articles of castings of steel were duly subjected to the permissible processes in which only surface defects or excess material have been removed and that they had not acquired a stage at which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22-6-1988 for cast articles of steel and between the period 20th February, 1988 to 22-6-1988 for cast iron and steel of all these articles are chargeable. The refund of duty was since ad valorem and hence the noticee was required to file price lists under Rule 173C which they had failed and the charge thus stood proved. He has likewise held that they had filed two classification lists after the period described under Chapter 73 with effect from 1-3-1988, the charge under Rule 173B stands established. The classification list filed effective from 1-4-1988 remained no longer in force with effect from 1-3-1988, in view of the changes made in the Tariff. He has also held that castings articles of iron and steel had been cleared without issuing GP.1 and no RT.12 returns have been submitted by the noticee between the period 20-5-1988 to 22-6-1988. The GP 1(s) of unmachined cast articles of steel do not bear the full description of goods i.e. the name by which the cast articles of steel are known in the trade. He has also held that classification list effective from 1-4-1987, the details of castings have not been given by the assessee. Thus there is clear suppression of facts. Cast article ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cast iron did not have any essential character or part of machinery, as the metal required to undergo several other processes as stated to acquire a specific shape and essential character of a part of machinery or mechanical appliances. He contended that Notification No. 223/88 has got wider applicability and he did not restrict to items falling only under Chapter 73 and hence they cleared the goods under that notification and there was nothing wrong in it as it does not change the item from being a casting of iron and steel. He further contended that the appellants were barred by time as there was no clandestine or surreptitious removal. They had been filing regularly classification list which had been approved from time to time. The department could have only issued short levy notice under Section 11A for re-classification and there was no suppression in the case and the question of invoking larger period did not arise. He contended that the case of the department was also not under the extended period of Section 11A but the department had made out a case under Rule 9(1) or 9(2) of Central Excise Rules on the charge of clandestine removal which on the facts of the case is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came out from the appellant s factory was a mere mould and did not specify the description as amended after 1-3-1988. He reiterated that Rule 9(1) cannot be invoked in this case. 7. We have carefully considered the submissions made by both the sides and perused the records. The main question that arises for consideration is as to whether the item which is a casting of iron and steel manufactured by the appellants can be considered as an item falling under Chapter Heading 84/86 as parts of machine on the ground that it has acquired the essential character of a complete or finished article classifiable under Chapter 84 to 86 as alleged in the show cause notice. The appellants have been filing regularly classification lists from time to time which has been checked and approved and cleared by the department. The description given in the classification list is articles of iron and steel (all types) manufactured with the aid of electric furnace. They have shown the Chapter Heading 7325.20 in their classification list dated 15-12-1987. This classification list has been checked and signed by the Inspector on 21-12-1987 and Superintendent Customs and Central Excise, Range III, Indore on 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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