Captive-use exemption for gases upheld where prior Tribunal rulings had already settled the same dispute.

Notification No. 217/86-C.E. was treated as available to gases manufactured and captively consumed within the factory for use in making dutiable final products. The dispute was considered already concluded by earlier Tribunal rulings between the same parties on the same question, and those prior decisions controlled the present issue. On that basis, the exemption was upheld for the captive-use gases and the Revenue's appeal was rejected.

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Issues: Whether Notification No. 217/86-C.E. dated 2-4-1986 was available to gases manufactured and captively consumed within the factory for manufacture of dutiable final products, despite the connected final products also being eligible to exemption on captive consumption.

Analysis: The dispute was already covered by earlier Tribunal decisions between the same parties on the same question. The gases were manufactured in the factory and used captively in the manufacture of wires and related products, while the final products were themselves cleared on payment of duty or were otherwise covered by the notification in the manner earlier decided. In view of the prior Tribunal rulings, the issue stood concluded and required no fresh examination.

Conclusion: The exemption under Notification No. 217/86-C.E. was held available to the gases, and the Revenue's appeal was rejected.

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