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2015 (9) TMI 40 - AT - Central ExciseAvailment of exemption on chewing tobacco under Notification No. 8/2004-CE dated 21/01/2004 - whether the appellants are eligible for exemption on compound under Notification No.52/2002, as their finished products i.e. chewing tobacco are wholly exempt under Notification No. 8/2004 - Held that:- Notification exempts all goods falling under tariff item 21069020 and chapter 24 of the first schedule to the CETA, 1985 manufactured in a factory and used within the said factory for manufacture of final products. The benefit of this notification is, however, not applicable where the final products are exempt from the whole of the duty of excise leviable. - Commissioner has discussed as to how the benefit of Notification No. 8/2004 is not applicable to the compound. However, he has not recorded any findings in regard to the submission of the appellants that while calculating the duty payable but for exemption, the duty payable on compound is to be taken as zero. It is the contention of the appellants that by adopting the above methodology, duty payable for the purpose of investment works out to excise duty payable on the final products but for the said exemption and the said amount is already invested and therefore, no duty is leviable on the compound. The facts were however, not available before the adjudicating authority while passing the order. It is the contention of the appellants that notification 52/2002 is not applicable to the inter-mediate products where the final products are wholly exempt from duty. Since in their case the final products are exempt subject to certain conditions, the said final products cannot be said to be wholly exempt. Matter requires a fresh look by the adjudicating authority - Impugned order is set aside - Matter remanded back - Decided in favour of assessee.
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