TEXMACO LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, Texmaco Limited (in short the company), carries on the business, inter alia, of manufacturing and selling Railway Wagons, pursuant to and in terms of contracts entered into from time to time with the Ministry of Railways, Government of India, the Railway Board supplies to the Company various items free of cost, such as, Wheel Sets, Centre Buffer Couplers, Air Brake Equipment etc. (hereinafter referred as Free Supply Items). The wagons are manufactured by the Company by using the Free Supply Items as well as other raw materials/parts obtained or manufactured by it.

(2.) Central Excise duty on the manufacture of wagons is leviable under sub-heading No. 8606.00 of the Schedule to the Central Excise Tariff Act, 1985, the material provisions of which are as under: <FRM>JUDGEMENT_522_ELT59_1992Html1.htm</FRM>

(3.) By a notification, bearing No. 452/86-C.E., dated November 20, 1986 as amended, the Central Government has exempted the wagons of the description mentioned in Table annexed to the said Notification from so much of the duty of excise leviable thereon as is in excess of the rates specified in the said Table. The said exemption is available provided no credit of duty on any of the inputs used in the manufacture of the said wagons has been availed under Rule 56A or 57A of the Central Excise Rules, 1944.