Manufacturing input exemption upheld for burnt dolamite used integrally in steel production and acidic oxide neutralisation.

Burnt dolamite used inside the factory to neutralise acidic oxides in steel manufacture was treated as integrally connected with the manufacturing process rather than as a mere protective input. On that basis, the item was considered to fall within Notification No. 217/86-C.E., and the exemption benefit was held admissible. The Department's challenge failed because the use of the material was linked to the manufacture of the final product and not confined to furnace protection alone.

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Issues: Whether burnt dolamite used for neutralising acidic oxides and protecting the furnace banks and bottoms in the course of steel manufacture was entitled to the benefit of Notification No. 217/86-C.E.

Analysis: Burnt dolamite was used within the factory during the manufacturing process to neutralise acidic oxides formed in steel production. Its use was not confined merely to protecting the furnace from damage, but was integrally connected with the manufacture of the final product. On that basis, the Tribunal's view that the item fell within the exemption notification was held to be correct.

Conclusion: The benefit of Notification No. 217/86-C.E. was held admissible, and the Department's challenge failed.

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