- (1.) Assessee-appellant (hereinafter referred to as the assessee ) claimed the C.I. Chilled Rolls being manufactured by the appellant under chapter heading 84.37 which in turn is exempted from the payment of excise duty vide exemption Notification No.56/95-CE dated 16.3.1995.
(2.) A show cause notice dated 27th September, 1996 was issued to the assessee alleging that the assessee first manufactures C.I. castings which are later on captively consumed for producing the C.I. Chilled Rolls; that since the assessee was producing intermediary product, it was liable to pay the excise duty on the C.I. castings under chapter heading 7207.10. Assessee in reply to the show cause notice had taken the point that C.I. castings which are intermediary product were not marketable and, therefore, excise duty could not be levied. According to the assessee, C.I. castings are in the process of manufacturing C.I.Chilled Rolls.
(3.) The adjudicating authority in its order dated 29.1.1999 recorded a finding to the following effect: Both the circulars issued by Board as mentioned above do not speak anything about marketability of castings and as such marketability of castings have got no bearing on the classification of the product. Even otherwise the castings manufactured by the market are capable of being sold in the market.;