ORDER
C.N.B. Nair, Member (T)
1. Learned Consultant Sh. K.A. Sindhi explains that appeal involved two issues, one relating to eligibility of the casting manufactured by the appellant to concessional rate of duty under Notification No. 89 of 1988, dated 1-3-1988 and the other relating to Modvat credit of inputs used in the manufacture of sand moulds. Sh. Sindhi submits that both the issues remain covered in favour of the appellant. He submits that the appellants are manufacturers of castings and the castings require further machining and other processes before they became parts, components etc. classifiable under Tariff Item 84. He refers to the decision of the Tribunal in Dhanman Precicast Pvt. Ltd. v. Collector of Central Excise, Aurangabad in 1998 (103) E.L.T. 269 wherein the Tribunal held that even after operation of felting and removal of surface defects carried out on raw castings, they continued to be classifiable under Chapter 73 and they are not classifiable under Chapters 84 to 87. He also refers to the decision of the CEGAT in the case of Shivaji Works Ltd. v. Collector of Central Excise, Aurangabad in 1994 (69) E.L.T. 674 wherein the Tribunal held that casting is a particular method and an item does not cease to be a casting or a cast article because it has been made according to a particular specification. With regard to eligibility of inputs used in the manufacture of sand moulds for Modvat credit, he refers us to the decision of the Tribunal in the appellants’ own case vide Order Nos. 3949 to 3952/98, dated 16-10-1998.
2. Learned JDR Shri S. Nunthuk points out that the appellants themselves have classified the casting in question under Tariff Item 84 for a subsequent period.
3. We have perused the records and have considered the rival submissions. We find that the appellants are manufacturing castings and the impugned order itself takes note of the fact that these castings of steel are subjected to various types of machining and finally they become finished/complete products of Chapter 84, 85, 86 or 87. In the circumstances, the products are admittedly castings only and are liable to be classified under Chapter Heading 73 as contended by the appellants. They are also eligible for the exemption under Notification No. 89 of 1988, dated 1-3-1988. The eligibility of inputs used in the manufacture of sand moulds to Modvat credit also remains covered in favour of the appellants under Order Nos. 3949 to 3952/98 of the Tribunal. Accordingly, the appeal is allowed with consequential relief to the appellants and impugned order is set aside.