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2019 (11) TMI 558 - HC - Central ExciseCaptive Consumption - manufacture of non-excisable goods - Exemption under N/N. 67/95-C.E., dated 16-3-1995 - by-product - carbon dioxide generated as a by-product in the manufacture of alcoholic liquor - petitioner uses the said carbon dioxide in the further manufacturing process to produce alcoholic liquor for human consumption (beer) - it is also alleged that SCN issued without jurisdiction - HELD THAT:- While it is trite that this Court would not normally entertain a Writ Petition impugning a show cause notice issued under a taxing statute, the exceptional cases in which this Court would interfere would include instances where the statutory authority is seen transgressing the limits of its jurisdiction while issuing a show cause notice. The contention of the Learned Senior Counsel for the petitioner being that the show cause notice is issued without jurisdiction, the matter needs to be examined in that light. In the instant case, the final product manufactured by the petitioner company being beer, which is an alcoholic liquor for human consumption, the manufacturing process cannot be seen as coming under the purview of the Central Excise Act. The levy of Central Excise duty is not attracted in such cases, where a by-product emerges in the course of manufacture of non-excisable products and the captive consumption of the said byproduct is only intended to efficiently manufacture a non-excisable product - Inasmuch as the final product emerging from the factory of the manufacturer is not excisable (as opposed to exempt or cleared at Nil rate of duty), Ext. P1 show cause notice has been issued on an erroneous premise and without jurisdiction. The Writ Petition is therefore allowed by quashing Ext. P1 notice as one issued without jurisdiction.
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