Exemption for plant-related items used in manufacture upheld for a 100% export-oriented unit

Weigh bridges and M.S. gratings used in a 100% export-oriented unit were treated as eligible for exemption under Notification No. 123/81-C.E. because they were used in connection with the manufacture of the final products. The M.S. gratings served as stair structures linking different floors, and the weigh bridges were used to weigh incoming and outgoing consignments. The Tribunal followed its earlier order in the assessee's own case and the Larger Bench ruling relied on there. The exemption was held admissible, and the Revenue's challenge failed.

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Issues: Whether weigh bridges and M.S. gratings used in a 100% export oriented unit were eligible for exemption under Notification No. 123/81-C.E. dated 2-6-1981.

Analysis: The items were treated as eligible because they were used in connection with manufacture of the final products. M.S. gratings were used for stairs connecting different floors, and weigh bridges were used for weighing incoming and outgoing consignments. The decision followed the Tribunal's earlier order in the assessee's own case and the Larger Bench ruling relied upon therein.

Conclusion: The exemption was admissible and the Revenue's challenge failed.

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