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2012 (9) TMI 917 - AT - Central ExciseWaiver of pre deposit - Denial of exemption claim - Captive consumption - Whether or not the appellant is entitled to exemption from excise duty in respect of MS angles, MS channels, joist etc. manufactured by him and captively consumed in the factory of production - Held that:- All capital goods and specified inputs manufactured and captively used within the factory of production are eligible to exemption from excise duty. In the instant case the benefit of notification has been denied to the appellant on the ground that MS angles, MS channels, joist etc. do not fall within definition of capital goods or components of capital goods or inputs; that aforesaid goods have been used for manufacture of coal, elevator, chamber separator, technological structure of gasifier which is a part of pre-heating furnace and since the goods in question have been used for manufacture of support structure those cannot even be termed as inputs eligible for the benefit under Notification. Adjudicating authority as also the Commissioner (Appeals) in our view is prima facie flawed for the reason that he has failed to appreciate that the coal elevator, chamber separator and coal gasifier are essential component of the production unit of the appellant. Undisputedly the goods in question have been used for purpose as such prima facie it appears that the goods have been used in relation to the manufacture of final product of the assessee. Therefore, the appellant is entitled to benefit of Exemption Notification No. 67/95-C.E. - Stay granted.
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