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2016 (10) TMI 865 - AT - Central ExciseCaptive consumption - benefit of exemption notification no. 67/95 - further processing of goods after packing into unit container - skimmed milk powder, branded butter and branded ghee - interpretation of the words “intended for captive use” of “intended for sale” - the demands raised by recording a finding that the goods were packed in unit containers and were branded and were intended for sale, hence having consumed captively duty liability arises. - Held that: - The said goods were packed in unit containers is an accepted fact but at the same time due to exigency i.e. shortage of the said goods, respondent consumed the goods which were manufactured and put up in 20 kgs. Corrugated boxes for captive consumption. - though the goods were intended to be cleared outside the factory, due to shortage of milk and milk products, respondent consumed the same within the factory premises. - there is no dispute that the goods were consumed within the factory premises and as such it cannot be said that there was no exemption available on the said products for captive consumption as notification no. 67/95 does not carve out any exception. It is seen that the inputs and final products in this case are both specified products in the Notification No. 8/98 dated 02/06/98 and in terms of para 4(c) of the said Notification clearances of specified goods captively as inputs are deemed to be exempt from the whole of excise duty. Therefore the clearances of Skimmed Milk Powder and Branded Butter though put up in unit container but used for captive consumption as inputs for regeneration of Milk are not dutiable. Appeal disposed off - decided against Revenue.
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