P.C. Jain, Member (T)

1. The adjudicating authority has demanded duty of Rs.18711/- and has imposed a penalty of Rs.250/- on the ground that the appellant has availed of benefit of notification 208/83 dated 1.8.83 in the manufacture of iron castings. It has been stated that the said notification gives the benefit of duty on iron casting if it is made out of raw materials specified in the notification alone. The raw materials mentioned in the notification do not include M.S. Scrap which has also been used by the appellant in the manufacture of the said iron castings. It has further been stated by the adjudicating authority that the addition of steel scrap in the list of raw materials was made by amendment of the said notification w.e.f. 1.3.84. vide notification 38/84.

2. On the other hand, learned consultant has submitted that the major raw material used in the manufacture of iron castings is old iron scrap which is mentioned in the list of raw materials in notification 208/83. Addition of 20 to 30% of steel scrap is used only to improve the physical properties of the final product, namely iron castings. Addition to' this small percentage of steel scrap does not change the essen