2001 (7) TMI 914

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....and on the ground that shell sand is not eligible for the benefit of exemption from Central Excise duty under Notification No. 217/86, dated 2-4-1986. 2. The appellants have contested the above finding and have submitted that Notification No. 217/86 has exempted "inputs" manufactured in a factory and used within the factory of production .........in or in relation to the manufacture of "final product" from the ............whole of duty leviable thereon and shell sand is an input so exempted They have submitted that shell sand manufactured in the appellant's factory is used in the same factory in or in relation to the manufacture of final products, namely iron casting. It is their contention that since there is no dispute about the u....

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....tification shall apply to inputs used in or in relation to the manufacture of final products (other than those cleared either to a unit in a Free Trade Zone or to a 100% Export Oriented Unit), which are exempt from the whole of the duty of excise leviable thereon or are chargeable to "Nil" rate of duty". 4. The learned SDR argued that the proviso has specifically barred exemption to "inputs" that are used in or in relation to the manufacture of final products which are exempted. The ld. SDR stated that the final product in the present case manufactured from shell sand was sand moulds and sand moulds are exempted under Notification No. 46/94 and earlier notifications. In view of the exemption of the final product, it was contended th....