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2014 (12) TMI 696 - HC - Central ExciseMODVAT credit - benefit of Notification No.217/86-CE and Notification No.67/95-CE - Captive consumption - Marketability of castings - Held that:- as per the agreement between the first respondent and Vehicle Factory of the Defence Ministry, the first respondent was prevented from selling or marketing the castings or passing on any information about the same to any other persons. Hence, the finding of the Original Authority as well as the Tribunal that aluminium castings in question were not marketable is justified. The lower authority has not examined the applicability of the notification but confined to examination of marketability aspect alone. It is an accepted fact that the final product namely, Spring Brake Actuation equipment is cleared without payment of duty under Notification No.239/86 and 64/95. In the manufacture of the above said final product, the aluminium castings are used. These castings are manufactured in the factory premises itself and captively consumed. For such captive consumption, Notification No.217/86 and 67/95 have been availed by the respondent. This is not proper in my view as these two notifications are not applicable when the final product is exempted. Hence, there appears to be an error apparent on the face of the record and the Original Authority is required to consider this issue, which has been raised in the show cause notice. - Matter remanded back - Decided partly in favour of Revenue.
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