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TMI Blog2006 (5) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent. [Order per : C.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 exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (copper cooling elements and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n relation to the manufacture of final products (other than those cleared either to a unit in a Free Trade Zone or to a 100% Export Oriented Undertaking 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. Learned SDR would, however, contend that since use of unrefined and rejected cathodes are as inputs in the manufacture of final product (cooling elements and launders) which are exempt, the exemption is not available in 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, inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axation and taking of credit in regard to goods manufactured and utilised in the same factory. The view taken by the lower authorities would go against that scheme of the notification and would force the assessee to resort to payment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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