Captive consumption exemption for sand used in castings upheld under the relevant excise notification.

Sand coated with resin was examined for duty liability in light of Notification No. 217/86-C.E., which specifically covered sand used in the manufacture of castings when consumed captively. On that footing, the exemption was treated as applicable to captive consumption, and the Tribunal's view was found correct with no infirmity in the impugned order. The result was that no duty was payable on such captive use of sand in casting manufacture, and the appeal failed.

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Issues: Whether sand coated with resin became a manufactured item exigible to duty, and whether the exemption under Notification No. 217/86-C.E. applied when the sand was used for captive consumption in the manufacture of castings.

Analysis: The exemption notification specifically covered sand used in the manufacture of castings when such sand was used for captive consumption. On that basis, the Tribunal's view was held to be correct and no infirmity was found in the impugned order.

Conclusion: The exemption applied to captive consumption, and no duty was payable on that basis. The appeal failed.

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