- (1.) This is an appeal against the order of the Customs, Excise and Gold (Control) Appellate tribunal.
(2.) It was the case of the assessee (appellant) that it was merely repairing old transformers and not manufacturing them. This case the tribunal accepted.
(3.) Further, it was the case of the assessee that it was entitled to the benefit of an Exemption Notification dated 30/4/1975, issued under the provisions of Rule 8 of the central Excise Rules whereby the central government had exempted from the whole of the excise duty leviable thereon on goods which fell under Item 68 of the First Schedule to the central Excises and Salt Act, 1944, which were manufactured in a factory and were intended for use in the factory in which they were manufactured. The assessee contended that, accordingly, it was not obliged to pay excise duty on parts manufactured by it in its factory which were used by it in the same factory for the repair of old transformers. It was also the assessee's case that, in the course of such repair, it also used parts which were purchased by it from others upon which excise duty had already been paid and, therefore, it was not liable to pay excise duty thereon once again. The tribunal disposed of this part of the assessee's case by staling: "The appellant is liable to pay duty on the value of spare parts manufactured and used in the old transformers and no duty is chargeable on the labour charges. " Although the said notification was reproduced in its judgment, the tribunal did not discuss it nor did it indicate why its benefit was not available to the assessee.;