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TMI Blog2001 (10) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... hich they undertake the process of cutting, plaining, grinding and drilling so that these can be used in the manufacturing of moulds/dies at suppliers' end; that the Revenue had demanded duty treating these products as "semi-finished dies"; that the moulds/dies were finally manufactured by the supplier after undertaking final machining in their factory. In this regard he referred to the enquiry conducted by the Superintendent and mentioned in the Adjudication Order No. 18/98, dated 14-10-98, passed by the Deputy Commissioner, wherein it is mentioned as under : "After doing the required cutting, grinding, shaping on the shaper machine, doing hole on the drilling machine, cutting the plate on milling machine and E.D.M. machine and sometimes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of Rule 2(a) is that in its incomplete or unfinished state, the article has the essential character of finished article; "some of the important aspects which are relevant in this regard are functional aspect, physical aspect and the degree of completion of the product"; that after the process undertaken by them, the impugned product can not be used as moulds and as such functional aspect is not satisfied. He also urged that no penalty is imposable as they had maintained proper accounts of job work operation and had acted under bona fide belief that the job work done by them is not liable to excise duty. 4. Countering the arguments, Shri M.P. Singh, learned D.R., submitted that as M/s. Lumax Industries had not taken any Modvat cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en by the supplier with the help of their sophisticated machines. We observe that the Adjudicating Authority has held the product in question as dutiable by applying Rule 2(a) of the Rules for the Interpretation of the Schedule which reads as under :- "2(a) Any reference in a heading to goods shall be taken to include a reference to those goods incomplete or unfinished, provided that the incomplete or unfinished goods have the essential character of the complete or finished goods." 6. This Rule 2(a) extends the scope of a heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished subject to the condition that it has the essential character of the complete or fini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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