HINDUSTAN STEEL LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS order shall also govern the disposal of Misc. Petition Nos. 735 of 1973, 736 of 1973, 737 of 1973, 738 of 1973, 739 of 1973, 740 of 1973 and 213 of 1974, in each parties are the same as above.

(2.) THE petitioner Company manufactures iron, steel and other steel products having its factory at Bhilai (M. P. ). For a proper appreciation of the question that arises for consideration in these petitions it would be appropriate to fifst consider the process of manufacture of some of the varieties produced by the petitioner Company. To explain this the respondents have filed a diagram which was not disputed on behalf of the petitioner.

(3.) IRON ore which is brought into factory, together with other inputs, is put in the blast furnace which produces Mollen Iron. Out of this Molten Iron, some is sent to pig casting machine for manufacturing pig iron and at that stage no duty is paid on it. Some of the Molten Iron is sent to the foundry for manufacturing "ingot Moulds" and "bottom Stools". In this process of manufacture of ingot moulds and Bottom Stools unserviceable scrap is also left behind. This part of the Molten Iron which comes to the foundry out of which ingot moulds and Bottom Stools are manufactured is admittedly a duty paid item in accordance with Item 25 of the Tariff. Obviously, the unserviceable scrap left behind is also a duty-paid item.