Prepared sand used in sand mould manufacture qualifies as an exempt input under Notification No. 217/86-C.E.

Prepared sand made by mixing river sand with bentonite and water for use in sand mould manufacture was treated as an input eligible for exemption under Notification No. 217/86-C.E. The Tribunal considered it unnecessary to decide marketability or limitation because the product fell within the notification's scope as an input used in manufacture. The conclusion followed earlier Tribunal authority recognising sand mix made from sand and chemicals as qualifying for the exemption. On that basis, the demand was not sustainable.

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Issues: Whether prepared sand used in the manufacture of sand moulds was entitled to exemption under Notification No. 217/86-C.E. as an input.

Analysis: The demand related to preparations of sand made by mixing river sand with bentonite and water for use in the manufacture of sand moulds. The Tribunal found it unnecessary to decide marketability or limitation because the product answered the description of an input for the purposes of Notification No. 217/86-C.E. The decision followed earlier Tribunal authority holding sand mix made from sand and chemicals to be an input eligible for the notification benefit.

Conclusion: The product in dispute was covered by Notification No. 217/86-C.E. and the demand was not sustainable.

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