Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Steel Authority of India Ltd. Versus C.C.E., Raipur

2016 (2) TMI 759 - CESTAT NEW DELHI

Manufacture - captive consumption - Duty liability on oxygen produced and supplied to the contractor located within the premises of appellant - thrust of ld. Counsel’s argument is that the oxygen has not been cleared out of factory and hence exemption available in terms of notification No.67/95-CE, for captive consumption is rightly claimed by them - Held that:- We find that the original authority fell in error in examining the issue like ownership of goods, free of cost supply and return of rec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ve established a factory at a site provided by the appellant inside their factory premises as per contract agreement. The oxygen is cleared to FSNL and consumed by FSNL. The exemption contemplated under notification No.67/95 is available if inputs (here ‘oxygen’) manufactured in a factory is used within the factory of production. Oxygen produced by appellant is not used by appellants in their factory of production. The same is cleared to factory of FSNL and used by FSNL, though on behalf of appe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d in the manufacture of iron and steel products liable to Central Excise duty. For processing scrap at Open Hearth Muck Dump area inside appellant s factory they gave a contract to M/s.Ferro Scrap Nigam Ltd. (FSNL) for lancing at the Dump area. FSNL process the scrap which in turn is used by appellant in or in relation to manufacture of final product. For the use of FSNL the appellant is supplying oxygen free of cost through pipelines. A dispute arose regarding appellants liability to duty on s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not amount to removal outside the factory. Benefit of notification No.67/95-CE is correctly claimed. b) There is no physical removal of exygen outside the factory of the appellant. The oxygen supplied through pipeline to FSNL is used within the factory only. Such clearance will not be a removal in terms of Rules 4 and 8 of Central Excise Rules, 2002. c) Notification No.67/95-CE is correctly availed by the appellants. The activities of FSNL are inside the approved premises of appellant only. The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

4. We have heard both the sides and examined appeal records. The issue for decision is the duty liability of appellant on oxygen produced and supplied by them to their contractor located within the premises of appellant. The thrust of ld. Counsel s argument is that the oxygen has not been cleared out of factory and hence exemption available in terms of notification No.67/95-CE, for captive consumption is rightly claimed by them. The said notification exempts, interalia, inputs manufactured in a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. The business arrangement and need is such that the impugned goods (oxygen) is cleared through pipeline to FSNL premises for further use. FSNL are using the said oxygen in the scrap recovery operation and are not registered with central excise department for any payment of duty on any final products. We find that the original authority fell in error in examining the issue like ownership of goods, free of cost supply and return of recovered scrap etc. to arrive at the finding that there is no p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inside their factory premises as per contract agreement. The oxygen is cleared to FSNL and consumed by FSNL. The exemption contemplated under notification No.67/95 is available if inputs (here oxygen ) manufactured in a factory is used within the factory of production. Oxygen produced by appellant is not used by appellants in their factory of production. The same is cleared to factory of FSNL and used by FSNL, though on behalf of appellant. We find the exemption as above cannot be extended in su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version