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TMI Blog1992 (2) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Rules. Second, whether the authorities were precluded from issuing notice and adjudicating if the cylinder liner was a machine part, even though for an earlier period the classification list claiming it as iron casting, thus exempt, had been approved. 2. Cylinder liner was manufactured by the appellant by casting molten iron in specific shape. By itself it was of no use. This could be said to be first stage. Its rough surface was thereafter removed. And after machining and honing it was delivered to the Railways. According to department it became identifiable as machine part. This was second stage. The Railways further treated it with honing and chrome-plating before putting it to use. There is no dispute that on the first sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 4. Notification No. 74/62 issued on 24-4-1962 as amended by Notification No. 119/64; dated 27-6-1964, under sub-rule (1) of Rule 8 of Central Excise Rules, 1944 is extracted below : "Exemption to iron in any crude form produced from old iron or steel scrap. - In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules 1944, the Central Government hereby exempts iron in any crude form including pig iron, scrap iron, molten iron or iron cast in any other shape or size falling under Item No. 25 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), and produced out of old iron or steel scrap or scrap obtained from duty-paid virgin metal, is with effect from 1st March, 1964, exempted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... term applied to fine textured even grained indurated sedimentary rocks, which may be used for imparting a keen edge to cutting tools, replaceable by silicon carbide products'. (as per Chambers' dictionary of Sc. & Tech.)." It is thus obvious that the processing undertaken in assessee's factory to render the cylinder liner as fully machined resulted in changing the goods from crude cast iron in size and shape to an identifiable commodity. The duty of excise is on manufacture of a goods and not on its use. 7. Reliance was placed on a letter issued by the Controller of Stores Indian Railways Diesel Locomotive Works, Varanasi stating therein : "Thus, it would be completely out of question to use the cylinder liners fully machined and after f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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