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TMI Blog2004 (2) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... -3-95 and 67/95, dated 16-3-95 as these were used within the factory of production. Shri Narasimha Murthy fairly conceded that duty demanded on jigs, patterns, fixtures and toolings is not sustainable. We find that in this case developmental charges were recovered by the appellants separately. These developmental charges would have gone into the cost of the patterns manufactured and the duty could have been demanded only on the excisable goods, which were manufactured from these patterns developed by the appellants for manufacture of the casting. The number of casting which could have been manufactured from the patterns developed for which developmental charges were recovered was neither ascertained by the Department nor the excisable goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 46/94-C.E., dated 1-3-94 whereas during the period from 1995-96 onwards these were fully exempt under Notification No. 56/95-C.E., dated 16-3-95 and Notification No. 67/95-C.E., dated 16-3-95. Therefore, demanding duty on the ground that the appellant had issued sale bills to the customers is contrary to the provisions of these notifications as these notifications give exemption to the pattern jigs/fixtures manufactured and used within the factory of production irrespective of the ownership of the goods. He relied on the CEGAT decision in the case of Elcon Clipsal India Ltd. v. CCE reported in 2002 (146) E.L.T. 360. 4. He also pleaded that the Commissioner has also demanded duty of Rs. 60,600/- on development charge. He stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conceded that duty cannot be demanded on jigs/patterns which were used within the factory of production for manufacture of Cl/Steel castings. He, however, pleaded that in case of development charges the value was to be distributed on the goods, which were manufactured out of the patterns for which development charges were recovered by taking a certificate from the Chartered Accountant and on that basis duty could have been recovered as pleaded by the appellants. 6. We have carefully considered the submissions made by both sides. We find that the jigs/patterns/fixtures manufactured by the appellant and used in the factory of production were exempt from payment of duty irrespective of the ownership of these goods under Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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