1998 (7) TMI 421 - AT - Central Excise

Summary

Issues involved:
- Allowability of exemption under Notification No. 217/86-C.E. for gases used in manufacturing steel wires
- Interpretation of the exemption notification in relation to captive consumption of gases
- Admissibility of the Revenue's appeal based on previous tribunal decisions

Analysis:
1. Allowability of exemption under Notification No. 217/86-C.E.: The appeal in question pertains to the exemption eligibility of Exo Gas, Inert Gas, and Ammonia Cracked Gas manufactured by the respondents for the production of steel wires, wire ropes, and strands within their factory. The central issue was whether the exemption under Notification No. 217/86-C.E. applied to these gases, given that the final products were cleared from the factory after paying central excise duty. The Department denied the exemption, arguing that since the steel wires were also exempted, the gases used in their manufacture were not eligible for the exemption.

2. Interpretation of the exemption notification: The Tribunal reviewed the series of proceedings initiated on this matter. The Assistant Collector initially rejected the claim, which was upheld by the Collector (Appeals). However, the Tribunal allowed the respondent's appeal against this decision in a previous order. Subsequently, when the Assistant Collector issued another order rejecting the claim, the Collector (Appeals) reversed this decision, which was upheld by the Tribunal in a separate judgment. In the present case, the Collector (Appeals) again ruled in favor of the respondent, following his previous decision, which had been upheld by the Tribunal in yet another separate judgment.

3. Admissibility of the Revenue's appeal: The Tribunal, after considering the events and previous judgments, concluded that the issue of whether the gases were eligible for the exemption under Notification No. 217/86-C.E. was already settled in previous tribunal decisions concerning the same parties. The Tribunal found no merit in the Revenue's appeal, stating that the issue had already been conclusively addressed in prior judgments. The Vice President further clarified that the dispute between the parties had been ongoing through various stages of adjudication and had been conclusively resolved in previous tribunal decisions. Consequently, the Revenue's appeal was deemed to have no legal basis and was rejected.

In summary, the Tribunal upheld the eligibility of the gases for exemption under Notification No. 217/86-C.E., citing previous decisions and finding no grounds to support the Revenue's appeal based on the established legal precedents and interpretations of the exemption notification in question.