Per S.L. Peeran : In both the appeals common question of law and facts arises and hence they are taken up together for disposal as per law.

2. The question that arises for consideration in these appeals is the exigibility of 'Molten Iron'. The department by their show cause notice dt. 11.9.1985 in E/ 1740/93-B1 to the appellants alleged that they were manufacturing excisable goods viz. molten iron falling under Tariff Item 25 (i) of the erstwhile first schedule of the Central Excise and Salt Act, 1944 and demanded duty of Rs. 75,35,693.46 on the alleged contravention of Rule 173 (b) (G) and F of Central Excise Rules, 1944 and clearances of molten iron said to have been removed without payment of duty for the manufacture of exempted Ingot Moulds and Bottom Stools. It is alleged that 'Molten Iron' is manufactured in Blast furnance and it is cleared without payment of Central Excise duty for steel making to their steel Melting shops and also to their Ingot Mould Foundry for the manufacture of Ingot Moulds and Bottom stools and other iron castings. It is also cleared to General Foundry for the manufacture of iron castings and that some ingot moulds and Bottom stools are cleared on payment of duty as the effective rate. But, it is alleged that major portion of ingot moulds and Bottom stools are cleared from ingot Mould Foundry without payment of duty for use inside T.I.S.C.O. works in manufacture of steel ingots in terms of the Notification No. 205/83-CE dt. 1.8.83.

3. It is alleged that the appellant had submitted the classification List No. 6/ 83 effective from 1.8.83 valid upto 16.3.85 showing molten iron against which effective rate of duty of Rs. 70/- PMT Basic Excise Duty and 10% SED is shown and with remarks "Excise duty is paid under later the better principle". It is stated that the remark merely indicates that the appellant wanted to remove the molten iron under amended Rule 9 & 49 of Central Excise Rules, 1944 vide Notification No. 187/83-CE for further manufacture of goods falling under Tariff Item 25 of Central Excise Tariff which are not exempted from the payment of duty or chargeable to "Nil' rate of duty. It is further stated that another classification list effective from 17.3.83 was filed in respect of I.S.P. which was not approved and assessment of RT-12 returns were made provisionally.

4. After further examination and scrutiny of the documents, the; department has alleged that the benefit of Notification No. 187/83-CE dt. 1.8.83, which amends Rule 9 & 49 of Central Excises Rules, 1944, is not admissible to the quantity of Molten Iron removed from the Blast furnances of or on the manufacture of Ingot Moulds and Bottom stools on which the exemption is availed under Notification No. 205/83-CE because of the condition stipulated under proviso to Rule 9 and 49.

5. The show cause notice dt. 29.9.87 issued in E/2085/93-B1 classifies the Molten Iron & Ingot moulds under Sub-heading 7201.00 & 8454.00 for clearances made for the period from August, 1986 to August, 87 of Rs. 34,46,845.20.

6. The appellants filed their reply stating that the Ingot mould and bottom stools are manufactured in their ingot mould factory and are sent to steel melting shops for use. After 40/50 heatings in the S. M.S., they become unfit for further use and thus they are broken into pieces (scrap) and against utilised in the S.M.S for the manufacture of steel ingots and, therefore, on steel products, duty is discharged. It is stated that duty has been paid on removal of the iron and steel products, in the integrated steel plant and hence duty need not be paid on pig iron or on steel ingots, if the same is again used within the plant for the manufacture of iron and steel products on which duty is ultimately paid. It is specifically pleaded that the Molten Iron is in a red hot condition, and it is not in a condition of being marketed and that it is not a commodity known in the market and hence it is not dutiable. It is further stated it is again mel