- (1.) The appellant manufactures Calcium Carbide. The question is whether the appellant was entitled to the benefit of notification no. 217/86-CE, dated 2-4-1986 in respect of MS Casings.
(2.) The notification provided exemption to Modvat Items if used as inputs within the factory of production in or in relation to the manufacture of final products specified in column 3 to the table appended to the notification from duty payable under the Central Excise Tariff Act, 1985. In terms of the Explanation which defines inputs, the following items were not to be considered as inputs for the purpose of the notification : (I) machines, machinery, plant equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of the final products; (ii) packaging materials in respect of which any exemption to the extent of the duty of excise payable on the value of the packaging materials is being availed of for packaging any final products; (iii) packaging materials the cost of which is not included or had not been included during the preceding financial year in the assessable value of the final products under Section 4 of the Central Excises and Salt Act, 1944 (1 of 1944) : or (iv) cylinders for packing gases.
(3.) The appellant manufactures MS Casings for use within its factory for the purpose of production of Calcium Carbide. The concurrent findings of fact by both the Commissioner (Appeals) by the Collector (Appeals) and the central Excise and Gold (Control) Appellate Tribunal (CEGAT) are that in the process of manufacture of the Calcium Carbide initially the appellant fills the carbon paste in MS Casings through which the current is passed and then the MS Casings are lowered into the furnace where the carbon paste hardens and burns out in the furnace. As far as the MS Casings are concerned they melt and get mixed up with other molten raw materials. The issue is whether the MS Casings are inputs within the meaning of Notification 217/87-CE.;