Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 759 - AT - Central ExciseManufacture - captive consumption - Duty liability on oxygen produced and supplied to the contractor located within the premises of appellant - thrust of ld. Counsel’s argument is that the oxygen has not been cleared out of factory and hence exemption available in terms of notification No.67/95-CE, for captive consumption is rightly claimed by them - Held that:- We find that the original authority fell in error in examining the issue like ownership of goods, free of cost supply and return of recovered scrap etc. to arrive at the finding that there is no physical clearance or sale of goods and hence no duty liability. Clearance to FSNL through pipeline is an admitted fact. FSNL is a separate corporate entity having assigned factory premises of their own is also admitted. Sale for a consideration or ownership of goods are not relevant to decide excise duty liability. The contractual arrangements to meet business needs do not take away the duty liability which may otherwise exist. FSNL have established a factory at a site provided by the appellant inside their factory premises as per contract agreement. The oxygen is cleared to FSNL and consumed by FSNL. The exemption contemplated under notification No.67/95 is available if inputs (here ‘oxygen’) manufactured in a factory is used within the factory of production. Oxygen produced by appellant is not used by appellants in their factory of production. The same is cleared to factory of FSNL and used by FSNL, though on behalf of appellant. We find the exemption as above cannot be extended in such situations. - Decided against assessee
|