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TMI Blog1999 (4) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... lty of Rs. 5 lakhs imposed. 2. Ld. Counsel Shri V. Sridharan appearing for the appellants submitted that the appellants were engaged in the manufacture of various iron and steel products in their factory at Bhilai. For purposes of obtaining ingots, the appellants also manufactured ingot moulds falling under Heading 84.54 of the Schedule to Central Excise Tariff Act, 1985. Under Notification No. 54/86, ingot moulds are eligible to full duty exemption provided that such goods were used in the factory of production in the manufacture of steel ingots and are melted either during or after such use in the said factory . The Collector in the impugned order held that during the period in question, the appellants had manufactured 1,98,677 M.T. of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f cannot be denied to them for the portion of ingot moulds cleared as scrap from the factory as substantial part of moulds had got melted from repeated use and had become scrap. He submitted that so long as the ingot moulds had been utilised within the factory to the extent possible, the benefit of Notification cannot be denied and any subsequent clearance as scrap would not be a ground for denying the exemption to such ingot moulds. He submitted that in the very nature the use of ingot moulds, they were intended to be used repeatedly for obtaining ingots and ingot moulds had a certain span of economic life which meant that after a certain cycle of successive uses the ingot moulds lose their economic utility as moulds by reason of melting. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disputed the said interpretation of the appellants at the relevant period since all the necessary returns had been filed by the appellants and accepted by the Deptt. There was, therefore, no wilful suppression with intention to evade duty. Alternatively, he also submitted that the scrap had already suffered duty and ingot mould itself would be exempt under Notification No. 217/86. 4. Opposing the Appeal, ld. SDR Shri D.S. Negi submitted that it was not correct to contend that ingot moulds got melted in the process of manufacture of steel ingots and would thereby become eligible to be sold as scrap without remelting. The ingot moulds were not subjected to the same amount of heat to which ingots are exposed in the furnace. The ingots were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings of Notification No. 54/86-C.E. giving full exemption to ingots moulds. The crucial words in the condition in Column 5 of the Table to the Notification reads as under : Provided that such goods are used in the factory of production in the manufacture of steel ingots and are melted either during or after such use in the said factory. The dispute relates to a certain quantity of ingot moulds removed as scrap by the appellants. The appellants have contended that the said scrap was infact nothing other than ingot moulds which had got melted during successive use. They claim that since the melting had taken place in the factory during its use the condition of melting within the factory during use is satisfied. From a reading of the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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