P.C. Jain, Member (T)

1. A common order is being passed because issues involved are common.

2. Facts relating to the appeals of M/s. Shivaji Works Ltd. are as follows :-

2.1 M/s. Shivaji Works Ltd. (hereinafter referred to as the first appellants) are engaged in the manufacture of iron and steel castings required for the manufacture of parts of machines falling under Chapters 84 to 87 of the CETA 1985. During the period from 23-6-1988 to 3-11-1988 the appellant cleared the iron and steel castings claiming their product to be classified under Heading No. 7325.10 to 7325.90 of the CETA 1985 and were charged to duty accordingly in terms of Notification No. 223/88 dated 23-6-1988. Superintendent of Central Excise, Range-II, however, observed that the said castings manufactured by the appellant were tailor-made castings required for machines falling under Chapters 84 to 87 and are manufactured as per specific instructions and drawings supplied by the customers. He also observed that these castings could be used only by the customer on whose behalf the said castings had been manufactured. It was, therefore, felt that the castings had the essential character of the machine parts for which they were ultimately intended. The department was also of the view that the Heading No. 73.25 CETA 1985 covered only those castings which had not been specified in the new Central Excise Tariff. It was also felt that in terms of Notification No. 223/88 dated 23-6-1988 the effective rate of duty applicable to such castings was Rs. 500/- per M.T. Therefore, two show cause notices dated 13-12-1988 and 15-12-1988 were issued by the Superintendent calling upon the appellant to show cause to the Assistant Collector of Central Excise, Solapur as to why the differential duty of Rs. 25,66,080.04p and Rs. 1,067.78 should not be recovered from the first appellant on the aforesaid two grounds. The adjudicating authority after due process of adjudication confirmed the demands of duty, as mentioned above by his order-in-original No. 28/89 dated 28-2-1989/7-3-1989.

2.2 On appeal before the Collector of Central Excise (Appeals), Bombay, the first appellants did not succeed. Hence the appeals by the first appellants.

3. Facts relating to the appeal of M/s. Continental Castings Ltd. are as follows :-

3.1 M/s. Continental Castings Ltd. are the manufacturers of iron and steel castings. It is alleged that these castings are used in machines/engines/motor vehicles falling under Chapters 84 to 87 of CETA, 1985. It is further alleged that the cast articles are identifiable as machine parts and have characteristics of complete or finished articles. It was, therefore, felt by the department that the castings would be assessable under sub-heading 8708.00 and were chargeable to duty at the rate of 20% ad valorem BED plus 5% SED for the period 1-3-1988 to 22-6-1988. Thereafter, these were allegedly chargeable to duty at the rate of Rs. 500/- per M.T. Basic plus 5% in terms of Rule 2(a) of Rules of Interpretation of CETA 1985. Accordingly, two show cause notices demanding duty of Rs. 12,74,731.84 BED plus Rs. 63,736.59 SED for the period 1-3-1988 to 22-6-1988 and another for demanding duty of Rs. 74,003.35 BED plus Rs. 3700.17 SED for the period 23-6-1988 to 31-7-1988 were issued to the second appellant. Order-in-original No. 116/90 dated 28-3-1990 was passed by the Assistant Collector of Central Excise, Nasik, confirming the aforesaid amounts of duty.

3.2 On appeal, the second appellant herein did not succeed. Hence this appeal before the Tribunal.

4. In the matters relating to M/s. Shivaji Works, the lower appellate authority has held that although the castings manufactured by the appellant continue to be castings but they are identifiable as machines parts falling under Chapters 84 to 87. Therefore, rate of duty of Rs. 500/- per M.T. as mentioned at S. No. 3 of Notification No. 223/88 is applicable to the castings manufactured by Shivaji Works.

4.1 With regard to the castings of