Repair and maintenance exemption applied to Runner Mass used as furnace lining, despite periodic replacement.

Notification No. 281/86 was held to apply to Runner Mass captively used as a protective lining in a furnace runner assembly, because the item was used for repair and maintenance of the furnace. Regular periodic replacement did not exclude it from the scope of maintenance. The exemption for excisable goods manufactured in the factory and used for repair or maintenance was therefore available, and the benefit of the notification was held admissible to the assessee.

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Issues: Whether Notification No. 281/86 was available to Runner Mass captively used as a protective lining inside the runner assembly for maintenance of the furnace.

Analysis: The disputed item was used in the furnace and had to be replaced regularly to keep the furnace in working condition. The mere fact that an item is periodically replaced does not take it outside the scope of repair or maintenance. The notification granted exemption where excisable goods manufactured in the factory were used for repair or maintenance, and the item in question was found to be used for maintenance of the furnace.

Conclusion: The benefit of Notification No. 281/86 was held to be admissible to the assessee.

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