P.T.C. INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) THE appellants manufacture Alloy Steels Castings in two units located in Lucknow in UP arid Bhiwadi in Rajasthan. At times, the rough castings manufactured in one unit are sent to the other for carrying put certain finishing processes. The removal of the rough castings is on payment of duty and takes the duty paid in the first unit is taken as modvat credit in the second unit. The second unit which receives the goods carries out the finishing processes like machining, hardening, testing etc. and sells the goods after payment of duty. Differential duty demands have been raised in the impugned orders in regard to clearance of rough castings on the ground that these goods have been undervalued, leading to short payment of duty.

(2.) IT is the appellant's contention that the duty demand is not warranted since whatever duty is paid in the first unit in regard to rough castings is available to the second unit as modvat credit and thus making the entire exercise revenue neutral. It is also pointed out that on an identical issue, the Commissioner of Central Excise (Appeals) had decided in favour of the appellants vide Order -in -Appeal No. 652(SN)/CE/JPR -I(390) 2002, dated 1.11.2002 for a different period.

(3.) WE have perused the records and have heard both sides. In the facts of the case, we are of the opinion that the appeal themselves can be disposed of. Therefore, after waiving the requirement of pre -deposit, we take up the appeals for consideration.