2009 (2) TMI 643

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..... curing inputs like tungsten wire, Molywire, graphite, ammonia gas, nitrogen gas etc. They manufacture intermediate products like filaments which are cleared captively for manufacture of bulbs. The vacuum bulbs are eligible for concessional rate of duty under Notification No. 10/2002 dated 1-3-2002, inter alia, subject to the condition that no credit of duty paid on inputs used in the manufacture of goods was taken under Rule 3 or Rule 11 of Cenvat Credit Rules, 2002. The original authority held that inasmuch as credit has been taken on the inputs like tungsten wire, Molywire etc., the assessee is not eligible for concessional rate of duty for the bulbs. Commissioner (Appeals) has held that the Cenvat credit has been taken only in respect of .....

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..... that when the filaments were cleared captively for the manufacture of bulbs, they had availed exemption under Notification No. 10/96 dated 23-7-1996. I find that this Notification, provides full exemption to certain products which are used captively in the factory of production and in my view the exemption availed by the Appellants is perfectly in order. Since the goods are cleared for captively consumption they have not paid any duty. In view of the fact that they had maintained a single account of credit in respect of inputs used in the manufacture of wires/filaments, they had paid 8% of the amount of such filaments cleared for captive consumption. In this situation it can not be alleged that the Appellants had taken credit on inputs used .....

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..... h as they have taken Cenvat credit on common inputs but have not maintained separate accounts. He has also held that they have not taken credit on other inputs used in the bulbs. Therefore, his finding that no credit on duty paid on any input has been taken as credit in relation to bulbs manufactured is legally correct. It cannot be held that the intermediate products are not excisable goods and that they are not exempted. Since the filament and gas are inputs for bulbs and no credit of duty paid on these goods has been taken, the condition of notification has been fulfilled. Therefore, we do not find any reason to interfere with the order of the Commissioner (Appeals). 6. The appeal is rejected. (Dictated & Pronounced in the open Co .....

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