COLLECTOR OF CENTRAL EXCISE,N.DELHI vs HINDUSTAN SANITARYWARE & INDUSTRIES

The Supreme Court upheld the decision of the Customs, Excise and Gold (Control) Appellate Tribunal, affirming that the respondent, a manufacturer of sanitary ware, is entitled to exemption under Notification No. 217/86 as amended by Notification No. 82/87-CE. The Court clarified that the moulds made from plaster of paris are to be treated as inputs in the manufacturing process and not as final products, thus qualifying for the exemption. The Court rejected the revenue's contention that these moulds should be classified as final products under the Central Excise Tariff Act, 1985.