Page 249 - ELT_2nd_15th April 2020_Vol 372_Part

2020 ] PEE CEE COSMA SOPE LTD. v. COMMISSIONER OF CENTRAL EXCISE, KANPUR 295

46. It needs to be stated that Tariff Item No. 40 of the Schedule to the
Tariff Act fell for consideration before the Central Board of Excise & Customs in
the aforesaid Circular and the said item is reproduced below :
“STEEL FURNITURE
Tariff Description of Goods Rate of
Item No. Duty
40. STEEL FURNITURE MADE PARTLY OR WHOLLY 25 per
OF STEEL, in or in relation to the manufacture of cent ad
which any process is ordinarily carried on with the aid valorem
of power, whether in assembled or unassembled condi-
tion and parts of such steel furniture (but excluding
slotted angles and channels made of steel).

47. It will also be appropriate to refer to the Circular dated 25 March,
1968 issued by the Central Boards of Excise & Customs. The relevant portion is as
follows :-
“II. Whether the use of gas for heating purposes would be use of ‘Power’
in any process of manufacture
The use of gas for heating cannot be treated as use of ‘Power’ in any process
of manufacture of goods falling under item 1-A.”
48. Tariff Item No. 1-A of the Central Excise Act, 1944 dealing with the
‘Confectionery’ in the First Schedule to the Tariff Act that fell for consideration in
the aforesaid Circular is reproduced below :
“CONFECTIONERY, Coco powder and chocolates In or in relation to the manu-
facture of which any process is ordinarily carried on with the aid of power,
namely :-
(1) Chewing Gums
(2) Cocoa powder
(3) Drinking chocolates, chocolates in the form of granules or
powder.
(4) Chocolates in the form of blocks, slabs, tablets, bars pastilles or
croquettes, or in any other form not otherwise specified
whether or not containing nuts fruit kernels or fruits.”
49. It is true that after the new Tariff Act came into force, the earlier cir-
culars/guidelines/instructions/Tariff advices issued in the context of the erst-
while First Schedule to Central Excises and Salt Act, 1944, had been withdrawn
by the Board by Circular dated 27 May, 1994, but the fact remains that the Board
had clarified that the use of ‘gas’ for welding steel furniture parts or use of ‘gas’
for heating in the manufacture of coco powder cannot be treated as use of ‘pow-
er’. There is no reason why such a meaning to the expression ‘power’ should not
be given in the new Central Excise Tariff. As noted above, Item No. 40 in the First
Circular relates to steel furniture made partly or wholly of steel, in or in relation to
the manufacture of which any process is ordinarily carried on with the aid of power. The
Circular clarified that if ‘gas’ is used for welding steel furniture parts, steel furni-
ture would not be subjected to levy of Central Excise duty. Under the Second
Circular issued in relation; to confectionery, it has also been clarified by the
Board that if ‘gas’ is used for heating purpose in or in relation to the manufacture
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