2000 (4) TMI 518 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, Kolkata considered whether broken sleepers removed for remelting within the factory are liable for excise duty or eligible for exemption under Notification No. 217/86-C.E. The appellant argued that broken sleepers were converted into raw material for manufacturing finished goods within the factory, making them eligible for exemption. The Revenue contended that broken sleepers are finished goods and should be liable for duty. The Tribunal found that the broken sleepers were remelted within the factory for manufacturing finished products, making them eligible for exemption under the notification. The appeal was allowed with consequential relief.