Per S.S. Sekhon :

The present appeal has been filed against confirmation of duty demand of Rs. 2391 (BED) and Rs. 239/- (SED) in respect of spot welding electrodes consumed during the period 18.9.91 to 29.2.92. The appellants used this spot welding electrodes, falling under Heading 8311.00, manufactured by them and captively used, for soldering the wheels being manufactured by them in their factory, and claimed the benefit of Notification No. 217/86 dated 2.4.86 after making necessary declarations.

2. The Collector (Appeals) after finding the stated use to be as follows :

"The electrodes are used in pairs, top and bottom. These electrodes are mounted on the Spot Welding Machine for spot welding of the wheels. The wheel to be welded is held between the top and bottom electrodes. When electricity is conducted through the top electrodes to the bottom electrode the wheel held in between the electrodes gets welded"

held that the impugned electrodes used in the manufacture of wheels were in the nature of tools/appliances fitted with the welding machine and therefore, they would be excluded by the explanation 1 to Notification No. 217/86 dated 2.4.86. The Collector (Appeals) approved the