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2012 (10) TMI 729 - AT - Central ExciseWhether exemption for captive consumption under Notification No. 67/95-C.E., is available to ingots cleared by the assessees but used in the manufacture of final products viz. CTD bars after opting out for compounded levy scheme – Held that:- Demand raised in the show-cause notice dated 22-3-2001 on ingots cleared on 31-8-1997 is barred by limitation for the reason that it was the practice of the assessees to raise an invoice for captive consumption of a large quantity of ingots and debiting the same in the RG 1 Register and used in the manufacture of final products not on the same date of their issue but on subsequent dates, and although the factory was not equipped to manufacture final products using such large quantity of ingots, no objection was raised to the issue of large quantity of ingots right from the commencement of the factory in 1995. Undisputedly, the assessee was manufacturing ‘MS Ingots’ in the ‘Induction Furnace Unit’ and other products in the “Roll Mill Area”. There is no indication about actual date of removal from the bonded store room if any of the “Induction Furnace Unit”. The assessees have also produced evidence to show that on earlier occasions also they were issuing more than or equal to 200 MTs on a single date. Their claim that when they issued the goods for captive consumption on 31-8-1997, they were under a bona fide belief that they were entitled to the benefit of exemption merits acceptance. - demand is barred by limitation – in favor of assessee
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