RAJKUMAR FORGE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By this Petition, filed under Article 226 of the Constitution of India, the Petitioners are challenging the order dated 28.11.1997 passed by the Respondent No.2 herein i.e. the Commissioner of Central Excise, PuneI, as also the order dated 21.05.2004 passed by the Respondent No.3 herein i.e. the Customs Excise & Service Tax Appellate Tribunal, West Zonal Bench, Mumbai in the facts and circumstances more appropriately mentioned herein under.

(2.) The Petition principally raises a question as to whether elongated period mentioned under Section 11A of the Central Excise and Salt Act, 1944 (herein after referred to as "the CESA Act 1944"), is available to the Respondent No.1 herein for demanding central excise duty for the goods cleared by the Petitioner during the period from December 1992 to 15th March 1995.

(3.) The facts involved in the above Petition can be stated in a nutshell thus : The Petitioner No.1 is a Public Limited Company engaged in manufacturing forgings which are used in the manufacture of Shfats, Gear, Pinion, Lever Coupling etc. The Petitioners in connection with the said manufacture had filed Classification Lists with the Respondents in respect of the said products claiming exemption under Notification No.223/88 dated 23rd June 1988. The Petitioners had initially classified the said products as other articles of iron and steel under Head 7326.90 of the Central Excise Tariff Act, 1985( hereinafter referred to as the "Tariff Act") and later on under Chapter 84 of the said Tariff. The manufacturing process involved in the manufacture of the said forge articles inter alia involves heating and beating of material (Ingots). Thereafter the process of machining is undertaken for which the Petitioners used to send the said goods to the job workers along with a drawing which is sent to the job workers with drawing is known as "proof machined job" for the guidance of the job workers. If the excess material is removed and the resultant shape is achieved, the Petitioners thereafter carry out proof machining and supply the forging to their customers. It is the case of the Petitioners that their buyers at their end subject the goods to various precision machinery process like grooving, teeth cutting, gear hobbing, key way machining, finish boring, finished threading, etc depending upon the part which is to be brought into existence and it is only thereafter, according to the Petitioners, that the forgings which are clear acquire a shape, precision, size and essential characteristic for being fit for use as a part of a machine.