{"id":250625,"date":"2001-07-03T00:00:00","date_gmt":"2001-07-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shivaji-works-ltd-vs-commissioner-of-central-excise-on-3-july-2001"},"modified":"2016-06-24T19:17:30","modified_gmt":"2016-06-24T13:47:30","slug":"shivaji-works-ltd-vs-commissioner-of-central-excise-on-3-july-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shivaji-works-ltd-vs-commissioner-of-central-excise-on-3-july-2001","title":{"rendered":"Shivaji Works Ltd. vs Commissioner Of Central Excise, &#8230; on 3 July, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Mumbai<\/div>\n<div class=\"doc_title\">Shivaji Works Ltd. vs Commissioner Of Central Excise, &#8230; on 3 July, 2001<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2002 (149) ELT 797 Tri Mumbai<\/div>\n<div class=\"doc_bench\">Bench: S T Gowri<\/div>\n<p id=\"p_1\">JUDGMENT<\/p>\n<p> Gowri Shankar, Member (Technical)  <\/p>\n<p id=\"p_1\"> 1. The question for consideration in this appeal is the eligibility to credit<br \/>\nunder Rule 57R of the duty paid on machines which the appellant used in its<br \/>\nfactory to make sand moulds and sand cores which were in turn used for<br \/>\ncasting articles of metal. In the order impugned in this appeal, the<br \/>\nCommissioner (Appeals) has confirmed the finding of the Assistant<br \/>\nCommissioner that, since sand moulds and sand cores were exempted from<br \/>\npayment of duty by notification 46\/94, the prohibition contained in Sub rule<br \/>\n(1) of Rule 57R that credit will not be available on capital goods if it<br \/>\nexclusively is used for making goods exempted from duty or subject to nil rate<br \/>\nof duty is attracted and credit was not available.\n<\/p>\n<p id=\"p_2\"> 2. The counsel for the appellant contends that sand moulds and sand cores are<br \/>\nthemselves as not excisable commodity, and not capable of being marketed.<br \/>\nThey are used exclusively for the manufacture of casting and they have no<br \/>\nother use. Therefore, he says, that moulding machines which are used in the<br \/>\nsand moulds must be considered to be used in the manufacture of final product<br \/>\ni.e. metal casting. He relies upon the decision of the Tribunal in  <a href=\"\/doc\/1538357\/\" id=\"a_1\">Shri Ramakrishna Steel Industries Ltd v. CCE<\/a>  1996 (82) ELT 575 and other<br \/>\ndecisions of this Tribunal.\n<\/p>\n<p id=\"p_3\"> 3. In the decision that the counsel for the appellant cited, the larger bench of<br \/>\nthe Tribunal found that sand moulds and sand cores were used relation to<br \/>\nthe manufacture of the steel castings, and concluded that the resins and<br \/>\nchemicals which are used for the purpose of producing sand moulds were<br \/>\ninputs used in relation to the manufacture of steel castings, and concluded that<br \/>\nthe resins and chemicals which are used for the purpose of producing sand<br \/>\nmoulds were inputs used in relation to the manufacture of the steel castings. It<br \/>\ntherefore declined to consider the alternative contention placed before it, that<br \/>\nsand moulds were intermediate products arising in the course of manufacture<br \/>\nof the final product. The two decisions of the Tribunal in <a href=\"\/doc\/1410968\/\" id=\"a_1\">Shivaji Works Ltd v.<br \/>\nCCE<\/a>  1990 (50) and  <a href=\"\/doc\/1280173\/\" id=\"a_2\">Mysore Kirloskar v. CCE<\/a>  1990 (50) ELT 175<br \/>\nhave held that sand moulds were not intermediate products arising in the<br \/>\ncourse of manufacture of metal castings. The reason advanced in both these<br \/>\ndecisions for this conclusion was that sand moulds did not occur at an<br \/>\nintermediate stage in the &#8220;product stream of the final product and hence they<br \/>\ncannot be construed to be an intermediate product.&#8221; The judgment of the<br \/>\nMadras High Court in <a href=\"\/doc\/1088268\/\" id=\"a_3\">Ponds (India) Ltd v. CCE<\/a>  1993 (63) ELT 3 has not<br \/>\nfound it possible to accept this view. The bench was required to answer the<br \/>\nquestion whether the plastic containers manufactured in a small factory<br \/>\nintended to pack cosmetic preparations made by Ponds (India) were<br \/>\nintermediate products. It answered the question holding that they were<br \/>\nintermediate products.\n<\/p>\n<p id=\"p_4\"> 4. <a href=\"\/doc\/325468\/\" id=\"a_4\">In Shri Ramakrishna Steel v. CCE<\/a>,  the larger bench has noted that &#8220;a sand<br \/>\nmould&#8217;s operation consists merely temporary use of sand, along with<br \/>\nchemicals and resin to create a core for the purpose of pouring molten metal.&#8221;<br \/>\nIt also noted that the use of the sand mould, a final product will never come<br \/>\ninto being. It would therefore be correct to say that, sand moulds thus have no<br \/>\nindependent functions or purpose. Their only purpose is to add a mould for the<br \/>\ncasting. Nobody therefore would set out to manufacture sand moulds unless<br \/>\nthey were to be independently used in the manufacture of castings. The<br \/>\nmaking of sand moulds therefore is an inevitable intermediate step in the<br \/>\nmanufacture of steel castings, by a particular mode of technology. It would<br \/>\ntherefore be correct to say that sand moulds are intermediate products.<br \/>\nTherefore, the provisions of Sub-rule (2) of Rule 57R would come into play.<br \/>\nThe sand moulds are specified as final products in the annexure to Rule 57Q<br \/>\nand the proviso under that rule is therefore satisfied. The machinery used for<br \/>\nthe manufacture of sand moulds therefore would rightly be considered as<br \/>\ncapital goods.\n<\/p>\n<p id=\"p_5\"> 5. Appeal allowed. Impugned order set aside.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Mumbai Shivaji Works Ltd. vs Commissioner Of Central Excise, &#8230; on 3 July, 2001 Equivalent citations: 2002 (149) ELT 797 Tri Mumbai Bench: S T Gowri JUDGMENT Gowri Shankar, Member (Technical) 1. The question for consideration in this appeal is the eligibility to credit under Rule 57R of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-250625","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Shivaji Works Ltd. vs Commissioner Of Central Excise, ... on 3 July, 2001 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/shivaji-works-ltd-vs-commissioner-of-central-excise-on-3-july-2001\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shivaji Works Ltd. vs Commissioner Of Central Excise, ... on 3 July, 2001 - Free Judgements of Supreme Court &amp; 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