9911796707
TMI Blog1999 (6) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... Calcium Carbide. 3. Brief facts of the case are that the respondents are engaged in the manufacture of calcium carbide carbon paste is filled in the M.S. casting through which current is passed and then it is lowered into the furnace when the carbon paste hardens and burns out in the furnace. The M.S. casting also gets melted and mixed up with other molten metal. The respondent gets duty-paid M.S. sheets from the market from which M.S. casting are made within the factory for captive use. A show cause notice was issued to the respondent stating therein that the benefit of Notification 217/86-C.E. was not available on M.S. casting. The adjudicating authority confirmed the show cause notice but on appeal filed by the respondent, the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification No. 217/86-C.E. The relevant portion of the notification is reproduced below : Exemption to Modvat items if used within the factory of production or in any other factory of the same manufacturer in the manufacture of finished goods. - In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts goods specified in column (2) of the Table hereto annexed (hereinafter referred to as "inputs") manufactured in a factory and used within the factory of production, or in any other factory of the same manufacturer in or in relation to the manufacture of final products specified in column (3) of the said Table, from the whole of the duty of excise leviable there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption is provided for the inputs manufactured in the factory and used within the factory of production in or in relation to the manufacture of final products specified in the notification. The Explanation to the notification specifically mentions that for the purpose of the notification 'inputs' does not include machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods. The respondents are not disputing the fact that M.S. castings were used as container. Reliance of the respondent on the decision of the Tribunal in the case of H & R Johnsons (I) Ltd. (supra) is not relevant in the present case. In that case refractory container comprising pillars, bases and setting bats were used i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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