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2018 (11) TMI 300 - AT - Central ExciseIntermediate goods - Clinker manufactured and used in the manufacture of Cement - benefit of N/N. 67/95-CE dated 16.03.1995 - International Competitive Bidding - The case of the department is that since the final product i.e. Cement is cleared under Exemption N/N. 6/2006-CE dated 01.03.2006, the Clinker manufactured and used for manufacturing of Cement is not eligible for Exemption N/N. 67/95-CE dated 16.03.1995. Held that:- The appellant have manufactured Clinker which is an intermediate product and the same was consumed in the manufacturing of other final product i.e. Cement. The said final product i.e. Cement has been cleared against “International Competitive Bidding” in terms of Exemption N/N. 6/2006-CE dated 01.03.2006, according to which the rate of duty is nil. From the plain reading of the above notification, it is observed that as per the above Notification, exemption is available in respect of goods used captively in the factory, within the factory of production in relation to manufacturing of final product. The Proviso to above notification provides that nothing contain in this Notification shall apply to inputs used in or relation to the manufacture of final product which are exempted from the whole duty of excise or chargeable to nil rate of duty, however the exception to this Proviso is provided in respect of supplies meant as mentioned in Clause I to V and also under Clause (VI) when the obligation prescribed in Rule 6 of Cenvat Credit Rule, 2001 is discharged. The Exemption is available in respect of inputs used captively even though the final product is cleared under exemption as per Rule 6(6)(vii) of Cenvat Credit Rules, 2004 since the appellant’s supply of final product is under N/N. 6/2006-CE. The issue is decided in the case of M/S. KEI INDUSTRIES LTD., N HASHMI VERSUS COMMISSIONER OF CENTRAL EXCISE [2016 (12) TMI 532 - CESTAT NEW DELHI], where it was held that As facts of the case are not disputed that the appellant is manufacturing final products and clearing the same on payment of duty in the open market and to Mega Power Projects without payment of duty. In that circumstances, the appellant is entitled for benefit of N/N. 67/1995 ibid for intermediate product emerging during the course of manufacture of final product. Appeal allowed - decided in favor of appellant.
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