Exemption for copper cathodes used in internal repair work upheld, and the duty demand was held unsustainable.

Exemption under Notification No. 281/86-C.E. was held applicable to copper cathodes cleared from the factory to the foundry shop for manufacture of articles used in repair and maintenance within the factory. The Tribunal followed its earlier decisions in the same assessee's cases and applied the same interpretation to the present matter. On that basis, the duty demand confirmed by the Collector could not be sustained and was set aside as inconsistent with the available exemption.

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Issues: Whether the benefit of Notification No. 281/86-C.E. dated 24-4-1986 was available in respect of copper cathodes cleared from the factory to the foundry shop for manufacture of articles used for repair and maintenance within the factory, and whether the duty demand could be sustained.

Analysis: The issue had already been decided in the assessee's own earlier cases, where the Tribunal held that the exemption notification covered the product in question. Following those binding prior decisions, the same legal position was applied to the present appeal. Since the exemption was available, the demand confirmed by the Collector could not survive.

Conclusion: The benefit of Notification No. 281/86-C.E. dated 24-4-1986 was available to the assessee, and the duty demand was unsustainable.

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