Exemption for captive-manufactured refractory bricks applies without a separate workshop where goods are used for machinery maintenance.

Refractory bricks manufactured within a factory and used captively for repair and maintenance of machinery were treated as eligible for exemption under Notification No. 281/86-C.E. The Tribunal held that the notification did not require a separately identified workshop, and manufacture at some place within the factory for the specified maintenance purpose was sufficient. Applying earlier Tribunal decisions, it followed the view favourable to assessees and held that denial of the exemption was unsustainable.

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Issues: Whether refractory bricks manufactured within the factory and used captively for maintenance and repair of machinery were entitled to exemption under Notification No. 281/86-C.E. dated 24-4-1986 notwithstanding the absence of a separate workshop.

Analysis: The notification granted exemption to excisable goods manufactured in a workshop within the factory and intended for use in the same factory or another factory of the same manufacturer for repair and maintenance of machinery. The decisive question was whether a separate workshop was necessary. The Tribunal held that the notification did not define workshop in a restrictive manner and that manufacture within some place in the factory for the stated maintenance purpose was sufficient. The issue had already been settled by earlier Tribunal decisions in favour of assessees, and that view was followed.

Conclusion: The assessees were entitled to the exemption, and denial of the notification benefit was unsustainable.

Final Conclusion: The appeal succeeded with consequential relief in favour of the assessee.

Ratio Decidendi: Where an exemption notification does not define "workshop" restrictively, goods manufactured within the factory for use in repair and maintenance of machinery qualify for the exemption even if they are not made in a separately identified workshop.

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