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1. Manufacturers of steel ingots, out of iron and steel melting scrap with aid of electric are furnace, challenged notices issued under Central Excise and Salt Act, 1944 for short levy on clearances of Runners and Risers and claimed that as they, too, were steel ingots or Melting Scrap they were liable to same duty as was payable on ingots, therefore, the notices issued to them were liable to be discharged.

2. Runners and Risers are solidified molten metal in refractory channel leading to casting or ingot mould. The Tribunal (Customs Excise and Gold Control Appellate Tribunal) found that since they are found in narrow channel and they are not of any pre-determined size or devised for producing solidified material for any particular use they could not be considered as ingots. They were held to be scrap. And the claim of exemption or concessional rate of duty was not accepted as it could not be extended to scrap.

5. One of the reasons which persuaded appellate collector to accept appellants' claim was that it would appear incongruous that ingot should be exempted from duty whereas its waste was exigible to duty. In fiscal matters one need not go, necessarily, by reason as was, in fact, submitted by learned Solicitor General who was very fair although quite firm. But what cannot be overlooked is the innate injustice and hardship to which appellants have been exposed, primarily, due to action of department and Government. If the order of the Tribunal is upheld then it may result in harsh economic difficulty of some as appellants are secondary or small manufactures who because of Board's clarification cleared the goods as steel ingots without any objection from the department. It may also lead to re-opening of matters which were closed long back. What is further significant is that dispute does not survive after 1983.