Consistency and predictability in judicial decision-making are vital for the administration of justice.

ORDER

1. The present appeal has been filed under Section 35-L(b) of the Central d Excise Act, 1944 (for short "the Act") impugning Final Order No. 925/2000-B dated 20-6-2000 in Appeal No. E/2677 of 1994-B passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for short "the Tribunal"), rejecting the appeal filed by the appellant assessee.

2. The appellants are engaged in the manufacture of malleable cast iron (MCI) inserts. These inserts are meant for the manufacture of concrete e sleepers for exclusive use by the Indian Railways. The appellant assessee was served with a show-cause notice dated 25-2-1994 under Section II-A of the Central Excises and Salt Act, 1944 on the ground that there was suppression of facts by the assessee regarding classification thereby making themselves eligible and taking the benefit of Notification No. 223/88-CE issued by the Central Government, Ministry of Finance. The show-cause notice, apart from holding that the assessee was not entitled to the benefit of Notification No.223/88-CE, also demanded differential duty for the exemption already availed by the assessee by suppression and misstatement. The appellants filed their objections to the notice on both counts viz. on merits as well as on limitation, which were rejected by the Collector of Central Excise, Nagpur (for short "the assessing authority") vide his Order-in-Original No. 27 of 9 1994. The assessing authority while holding the notice to be beyond the period of limitation and therefore bad in law, decided against the assessee on merits.

3. Aggrieved against the aforesaid order passed by the assessing authority, the appellant assessee filed Appeal No. E/2677 of 1994-B before the Tribunal, which was rejected vide the Tribunal's Final Order No. 925/2000-B dated 20-6-2000. It affirmed the decision of the assessing authority to the effect that the assessee is not entitled to the exemption under Notification No. 223/88-CE. The said order of the Tribunal dismissing the appeal preferred by the assessee against the order of the assessing authority, is under challenge in the present appeal.

4. Heard counsel appearing for the assessee as well as for the Department.

5. Without going into the other facts, it may be stated that the Tribunal in Hindustan Gas and Industries Ltd. v. CCEI laid down the test that the inserts required a precision machining to come out of the exemption notification. The Tribunal in the said judgment in paras 7, 8 and 9 observed, thus: (ELT pp.4l4-l5)

"7. Before the introduction of the new Tariff from 1-3-1986, these inserts were classified as castings of iron and steel. They were not being classified under Tariff Item 68 of the Tariff. In Tata Iron and Steel Co. Ltd. v. Union of India the Supreme Court had gone to deal with the forged products in rough machined conditions. The Supreme Court observed that machining and polishing is done to remove excess surface skin from the forged product and was incidental or ancillary to the manufacture of forged products as per Section 2(j) of the Central Excise Act, 1944. In that case before the Supreme Court, the goods were supplied to the Railways in rough machined condition under which excess skin or manufacturing defects were removed and those products were subsequently precision machined by the Railways themselves at their workshops before being put to use. The Supreme Court observed that the duty was payable at two stages viz. under Tariff Item 26-AA on the forged products and under Tariff Item 68 on the completion of the manufacture of finished goods. They added that since the precision machining is done at Railways' workshops, the appellant in that case was not liable to pay duty under Tariff Item 68.

8. In the case before us, there is nothing on record to show that the inserts required any precision machining or that any such machining was done by the appellants. We, therefore, consider that only the first stage duty under Heading 73.07 was chargeable, which