PEFCO FOUNDRY CHEMICALS LTD. vs COLLECTOR OF CENTRAL EXCISE, PUNE

The Supreme Court upheld the Tribunal's finding that the cylinder liners manufactured by the appellant were fully machined and identifiable as machine parts at the time of supply to the Railways, thus attracting excise duty under Entry 68 of the Central Excises and Salt Act, 1944. The Court clarified that the duty is levied on the manufacture of goods, not their subsequent use, and dismissed the appellant's contention regarding the classification of the goods as iron casting. The ruling emphasized that the contract was for fully machined cylinder liners, supported by correspondence from the Railways, confirming the nature of the supplied goods.