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2014 (11) TMI 576 - CESTAT KOLKATAWaiver of pre-deposit - Manufacturing and captive consumption of 'Compound' in the manufacturing of ‘Finished Chewing Tobacco' which was exempt from duty - benefit of Notification No.52/02-CE dated 17.10.2002 and Notification No.08/2004-CE dated 21.01.2004 - Suppression of facts - Clearance of goods for captive consumption - Held that:- It is not in dispute that the manufactured intermediate product, i.e.compound is excisable and hence dutiable. Even though at the adjudication stage, the applicants disputed its excisability, but such an argument has not been pressed hard before us. Now, the question arises is whether duty is required to be discharged on the intermediate product, ‘compound’. An intermediate product is exempted from payment of duty in the normal course under Notification No.67/95-CE dated 16.03.95, if consumed in the factory for manufacture of dutiable final products and in the present case also, under Notification No.52/02-CE dated 17.10.2002, the intermediate product is exempted if the final product is dutiable. The crux of the arguments advanced by the ld. Advocate is that it is not the intention of the legislature to levy duty on the intermediate products. It is the contention that in any case, no duty is required to be paid on the intermediate product when used in the manufacture of other finished goods. The argument is attractive and we would have agreed with the contention of the ld. Advocate for the Applicants; but we find that the vital point missing from the said argument, is that the finished product ought to be dutiable, so as to claim exemption on the intermediate product. Prima facie, we are of the view, both intermediate and final product cannot avail the benefit of exemption from payment of duty. Prima facie we do not find from records that the Applicants had specifically ever disclosed the facts and claimed exemption on the intermediate product ‘Compound in balti’, even after the issue of exciseablity was settled by the Hon’ble supreme Court [2005 (4) TMI 66 - SUPREME COURT OF INDIA] in their own case. In these Circumstances, the Applicants could not make out a prima facie case for total waiver of pre-deposit of dues adjudged. No financial hardship pleaded - Partial stay granted.
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