1999 (6) TMI 137 - AT - Central Excise

Summary

Issues:
- Whether M.S. castings used as containers are entitled to the benefit of Notification No. 217/86-C.E.

Analysis:
1. Issue: Benefit of Notification 217/86
- The appeal was filed against the Order-in-Appeal allowing the benefit of Notification No. 217/86 for M.S. castings used in the manufacture of Calcium Carbide.
- The Revenue contended that the M.S. castings were used as containers for carbon paste in the manufacturing process and thus were not eligible for the notification's benefit.
- The Respondent argued that the M.S. castings were consumed during the manufacturing process and relied on a previous Tribunal decision regarding refractory containers being eligible for a similar notification.

2. Detailed Analysis:
- The Notification exempts specified inputs used within the factory of production for the manufacture of final products. It specifically excludes machines, machinery, or tools used for producing goods as 'inputs.'
- The central issue was whether M.S. castings, used as containers, qualified for the notification's benefit. The Respondent did not dispute this use but claimed that the castings were consumed during the manufacturing process.
- The Tribunal differentiated this case from a previous decision where refractory containers were held eligible, emphasizing that the M.S. castings here were indeed used as containers and fell under the exclusion clause of the notification.
- Consequently, the Tribunal found that the Respondent was not entitled to the benefit of the notification due to the exclusion clause, setting aside the previous order and allowing the appeal filed by the Revenue.

This detailed analysis highlights the key arguments, legal provisions, and the Tribunal's reasoning in determining the eligibility of M.S. castings for the Notification's benefit.