Captive consumption exemption for Mill Wrapper upheld where earlier Tribunal ruling was followed and Revenue's objection was rejected.

Mill Wrapper captively consumed in the manufacture of Reel Core, later used for winding paper, was treated as eligible for exemption under Notification No. 217/86-C.E. The Tribunal followed its earlier final order in the same respondents' case and applied that ratio to the present facts. The Revenue's objection that exemption available for Reel Core under Notification No. 139/88-C.E. should defeat the claim was not accepted as a basis to deny the Mill Wrapper exemption.

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Issues: Whether Mill Wrapper captively consumed in the manufacture of Reel Core, which is further used for winding paper, was eligible for exemption under Notification No. 217/86-C.E. dated 02.04.1986.

Analysis: The same respondents had earlier obtained a final order granting the benefit of the notification to Mill Wrapper used in the manufacture of Reel Core and then for winding paper. That earlier determination was held applicable to the present facts, and the Tribunal followed the same ratio. The Revenue's objection based on the availability of exemption for Reel Core under Notification No. 139/88-C.E. was not accepted as a basis to deny the benefit claimed for Mill Wrapper.

Conclusion: The Mill Wrapper was held eligible for exemption under Notification No. 217/86-C.E. and the Revenue's appeal was rejected.

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