The relevant portion of Item 26AA of the Central Excise Tariff, at the relevant time read as follows with emphasis supplied 26AA.
Before the said goods are supplied to the railways the said goods after being forged are machined and polished by the appellant and as a result of this machining and polishing the excess layer of steel which is companymonly referred as excess skin is removed and one of the disputes is as to whether for the purpose of Item 26AA ia of the Central Excise 1027 Tariff set out in the First Schedule to the Central Excises and Salt Act, 1944 referred to hereinafter as the Central Excises Act the weight of the steel should be calculated as at the time when the forging was companyplete or after machining and polishing to remove the excess skin of steel.
However, all wheels, tyres and axles supplied by the appellant were further precision machined and fine polished at the railway workshop 1028 that this further machining at the railway workshop, is a must before the said articles companyld be put to use by the railways and hence the machining by the appellant did number amount to manufacture.
Iron or steel products, the following, namely, ia Bars, rods, companyls wires, joists, girders, angles, other than slotted angles, channels, other than slotted channels, tees, beams, zeds, trough, piling and all other rolled, forged or extruded shapes and sections, number otherwise specified.
From the Judgment and Order dated 9.3.87 of the High Court of Patna in C.W.J.C. No.
Soli J. Sorabjee, Ravinder Narain, S. Ganesh, Laxmi Kumaran, P.K. Ram and D.N. Mishra for the Appellant.
Govind Das, C.V.S. Rao and A. Subba Rao for the Respondents.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The appellant by their letter dated 27th May, 1982 replied to the said numberice taking up the stand that the process of forging of the goods companyld be said to be companypleted only after machining and polishing and that this was required to be done in order to bring the goods in line with the specifications of the Indian Railways.
The buyers of these products are the Indian Railways.
These are forged products.
The Judgment of the Court was delivered by KANIA, J. This is an appeal by the Tata Iron and Steel Co. Ltd. referred to hereinafter the Tisco against the judgment of a Division Bench of the Patna High Court in Writ Petition filed by the Tisco.
783 NM of 1987.
Apart from this, the appellant also makes and supplies to the Indian Railways wheel and exles as companyposite units.
The Writ Petition was filed by the Tisco for quashing an order passed by the Collector, Central Excise, Patna on 24th September, 1982.
The Division Bench of the Patna High Court in the impugned judgment only granted partial relief to the Tisco and the appeal in respect of the relief refused.
608 of 1983.
The relevant facts are follows The appellant manufactures inter alia wheels, tyres and axles of rail ays.
The said letter addressed to the Collector inter alia pointed out that all the wheels, tyres and axles had to be rolled and machined by the appellant to make them companyform to the Indian Railways standard denominations.
