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2016 (12) TMI 1452 - AT - Central ExciseDuty on intermediate goods - Phosphoric Acid - manufacture of Sodium Tripoly Phosphate (STPP) and cleared without payment of duty under N/N. 49/94-CE(NT) dt. 22.9.1994 - demand of duty on intermediate product on the ground that the final product is exempted from whole of the duty of excise - Held that: - the appellant have cleared the final product against CT-2 certificate issued by the buyer of the goods in terms of N/N. 49/94-CE (NT). As per this notification the goods supplied by the appellant is meant for use in the export goods - from the conditions of notification it is clear that the goods supplied by the appellant is meant for use in the export goods. Moreover the supplies under N/N. 49/94-CE(NT) is against the advance licence to the holder of the advance licence. This supplies are also treated as deemed export in terms of Export and Import Policy. For all this reasons the supplies made by the appellant under bond which is meant for use in the export goods cannot be treated at par with the non duty paid goods or exempted goods. The final product supplied by the appellant against CT-2 certificate cannot be treated as nil duty or exempted goods. In such a case the intermediate goods will be entitled for N/N. 67/95-CE, hence the demand on the intermediate product i.e. phosphoric acid is not tenable - appeal allowed - decided in favor of appellant-assessee.
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