TMI Blog2006 (5) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... .N.B. Nair, Member (T)]. The issue raised in both these appeals is the same. The appellant manufactures several copper products in its factory from unrefined copper. Two such items are copper cooling elements and copper launders . These are (captively) used as capital goods by the appellant in its factory for the manufacture of other goods. Accordingly, it claimed exemption under Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d copper launders) had not discharged duty liability. The demand is made relying on the proviso to the notification. 4. Since revenue s case is based on the exclusion contained in the proviso, we may read the relevant portions of Notification No. 67/95 : GENERAL EXEMPTION NO. 6 Exemption to all capital goods and inputs if captively consumed within the factory of production:- (i) capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taking or to a unit in an Electronic Hardware Technology Part or to a unit in a Software Technology park), which are exempt from the whole of duty of excise leviable thereon or are chargeable to Nil rate of duty. Explanation. - For the purpose of this notification inputs does not include :- (i) packaging materials in respect of which any exemption to the extent of the duty of excise p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the proviso to the notification. 6. It is clear from the above notification that capital goods produced in the factory of consumption is exempt. Similarly, inputs used in a factory is also exempt provided the final product is not exempt from the whole of duty of excise leviable thereon or are chargeable to nil rate of duty. The question that arises is whether the final product, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of duty at every stage and take credit of duty paid, thus, availing the same benefit through the circuitous route of credit. Thus, the whole exercise would only cause more elaborate account keeping without any benefit to the revenue. The benefit that the exemption notification sought to give directly should not be made available only indirectly through Cenvat credit. 7. In the result, the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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