https://www.taxtmi.com/caselaws?id=95859 Notification No. 217/86-C.E. exempted specified inputs used captively within the factory of production, or in another factory of the same manufacturer, only when the statutory conditions were met and the final products were not wholly exempt or chargeable to nil rate of duty. On the facts noted, acetylene gas used for manufacture of machinery parts for repair and maintenance did not qualify because the parts were not shown to have suffered duty in the relevant chain of manufacture. Acetylene gas used for cutting operations that resulted in scrap also did not qualify, as the proviso for use in another factory was inapplicable and the scrap was cleared at nil rate. The exemption was therefore unavailable. en-us Fri, 08 Sep 2000 00:00:00 +0530 Thu, 15 Dec 2011 15:00:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=95859 Notification No. 217/86-C.E. exempted specified inputs used captively within the factory of production, or in another factory of the same manufacturer, only when the statutory conditions were met and the final products were not wholly exempt or chargeable to nil rate of duty. On the facts noted, acetylene gas used for manufacture of machinery parts for repair and maintenance did not qualify because the parts were not shown to have suffered duty in the relevant chain of manufacture. Acetylene gas used for cutting operations that resulted in scrap also did not qualify, as the proviso for use in another factory was inapplicable and the scrap was cleared at nil rate. The exemption was therefore unavailable. Case-Laws Central Excise Fri, 08 Sep 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=95859