1999 (12) TMI 405

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rous castings falling under Chapters 74 76 of the Central Excise Tariff Act, 1985. In July, 1992 i.e. on 19th 20th July, 1992 an Inspector of Central Excise visited the factory of the appellants. It was represented before the Inspector that the goods were not attained the finished stage as testing had to be done. On 21-7-1992 Preventive Officers visited the factory and made a search. They also scrutinized RG1 registers. A show cause notice was issued on 30-12-1992 alleging violations of Rule 173Q as well as penalty under Rule 209A on the other noticee. The notice further alleged that there was a contravention of provisions of Rule 173Q(4) read with Rules 53 226. The adjudicating authority on the basis of the reply confirmed the demand .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ly found that in reply to the show cause notice nowhere it has been mentioned by the appellants that the goods have been produced on the basis of specific orders of the buyers and that such orders required testing to be done. In the absence of the same I cannot agree that testing is a condition necessary for treating it as a manufactured item. 5. In this connection I extract what is contained in para 11 of the said judgment, as follows:- "11. Here, in the instant case, the products in question are (1) wire mesh of different sizes and grades made out of stainless steel and phosphor bronze wires (2) filters and spinnerette filter packs made out of said wire mesh. Now considering the purchase orders, specimen of which are produced, it is f .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ill be very clear that this is not the case where the goods have been manufactured on a specific order and a specific design supplied as indi cated and are made receivable by the ordering party after indicating certain specific test. It is, therefore, to be treated as the goods which are manufactured by the manufacturer according to their own design and the order is placed to purchase the said manufactured product and the manufacture is complete as soon as the manufacturing process is complete and the goods are offered for sale. The case before us can easily come within the parameters provided under para 11 of the said judg ment. In this case the appellants never put before the authorities that the goods have been manufactured on a specific .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X