Ruma Pal, J. - (1.) The respondent-assessee manufactures various items such as Fork Lift Trucks, lifting tackles, trolleys, conveyors and measuring instruments such as gauges/templates for being utilised costively in the manufacture of their final products. They claimed exemption from payment of excise duty under Notification No. 217/86-C.E., dated 2nd April 1986 for the period 1986-1995.
(2.) The notification in so far as it is relevant reads as follows: "The Central Government hereby exempts goods specified in column (2) of the Table here annexed (hereinafter referred as inputs) manufactured in a facry and used within the facry of production, in or in relation the manufacture of final products specified in column (3) of the said Table, from the whole of the duty of excise leviable thereon which is specified in the Schedule the Central Excise Tariff Act, 1985 (5 of 1986); Provided that nothing contained in this notification shall apply inputs used in or in relation the manufacture of final products which are exempt from the whole of the duty of excise leviable thereon or is chargeable nil rate of duty. Explanation - For the purposes of this notification, inputs does not include - (i) machines, machinery, plant, equipment, apparatus, ols or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation the manufacture of the final products."
(3.) The Department rejected the respondents claim for exemption. However, the Tribunal allowed the respondents appeals and granted it the benefit of the notification. Being aggrieved, the Revenue has preferred this appeal.;