Central Excise - Sub-heading No. 2505.00, raw feed, slurry and lime stone used for manufacture of clinkers and cement invoking of Section 11C for the period to 13-11-1986 - Regarding - Central Excise - 21/89

Central Excise - Sub-heading No. 2505.00, raw feed, slurry and lime stone used for manufacture of clinkers and cement invoking of Section 11C for the period to 13-11-1986 - Regarding Circular No. 21/89 Dated 23-3-1989 [From F. No. 118/2/89-CX.3] Subject : Central Excise - Sub-heading No. 2505.00, raw feed, slurry and lime stone used for manufacture of clinkers and cement invoking of Section 11C for the period to 13-11-1986 - Regarding. This is a reference to the letter F. No. V(25)19/1/87/CX/7115, dated the 7th March, 1989 on the subject mentioned above and to say that the matter has been examined. 2. The exemptions provided under Notifications Nos. 447/86-CE and 448/86 both, dated 13-11-1986 are in respect of 'lime stone', 'raw feed' and 'slurry' and not in respect of cement clinkers. There may be factories producing cement clinkers only. There may be factories producing cement clinkers both. In respect of the factories producing cement clinkers only, the conditions of the aforementioned exemption notifications would remain satisfied if the said exempted goods in question are captively consumed in the manufacture of cement clinkers only. The notifications in question do not require either expressly or even impliedly that cement clinkers so produced have to be necessarily captively consumed in the manufacture of cement. In fact, the problem of excise duty liability on cement clinkers is taken care of by a separate Notification No. 119/86-C.E., dated 1-3-1986. So when all these notifications are read together, it would clearly appear that the conditions of the exemption notification in question would remain satisfied in respect of the factories producing only cement clinkers if the exempted goods in question are captively consumed in the manufacture of cement clinkers. This apart, the intention of the government has been to allow the benefits of the exemption notifications in question to the factories producing cement clinkers and also to the factories producing cement clinkers and cement both.