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2016 (12) TMI 532 - CESTAT NEW DELHI

2016 (12) TMI 532 - CESTAT NEW DELHI - TMI - Captive consumption - denial of benefit of N/N. 67/95 CE - intermediate products, armoured cable - whether the appellants are liable to pay the duty on intermediate product i.e. armoured cable, which has been used for manufacture of power cables which is ultimately cleared on payment of duty in the open market and to Mega Power Projects without payment of duty? - Held that: - An identical issue came up before the Tribunal in the case of Thermo Cables .....

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sulated (power) cables in the factory during the material period. - As facts of the case are not disputed that the appellant is manufacturing final products and clearing the same on payment of duty in the open market and to Mega Power Projects without payment of duty. In that circumstances, the appellant is entitled for benefit of N/N. 67/1995 ibid for intermediate product emerging during the course of manufacture of final product - appellant entitled to benefit of N/N. 67/95 CE - appeal all .....

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the case are that appellant is engaged in the manufacture of power cables. They are clearing the goods on payment of duty in open market and also clearing the cable to various Mega Power Projects against International competitive bidding by availing the exemption under notification 12/2012- CE dated 17.3.2012 (S.No.326) and earlier notification No. 6/2006 dated 1.3.2006 (S No. 91). During the course of manufacture of finished goods, armoured cable or cable at armoured stage, sheathed wire were a .....

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evade payment of duty. Proceedings were initiated against the appellants which were adjudicated and resulted in passing of impugned orders by confirming the demand of duty along with interest and penalty on main appellant and on Shri S N Hashmi (Commercial). 3. Aggrieved from the said order, appellants are before us. 4. Shri Bipin Garg, learned advocate appearing for the appellants submits that the cable at the stage of armoured cable is not marketable, therefore they are not liable to pay the .....

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sions in detail. 7. On careful consideration of submissions of both the sides, the short issue emerges before us is whether the appellants are liable to pay the duty on intermediate product i.e. armoured cable, which has been used for manufacture of power cables which is ultimately cleared on payment of duty in the open market and to Mega Power Projects without payment of duty. 8. An identical issue came up before the Tribunal in the case of Thermo Cables Ltd. (supra) wherein this Tribunal obser .....

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tional duty of customs when imported into India. It is not in dispute that the final products cleared by the assessee without payment of duty during the relevant period satisfied this condition. Against this backdrop, one has to read the provisions of Rule 6(6)(vii) of the CENVAT Credit Rules, 2004. This sub-rule reads as follows :- (6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either (i) (ii) (iii) ( .....

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sion, it is clear that the appellant did not have any liability under sub-rule (2) to maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and inputs meant for use in the manufacture of exempted goods, nor did the assessee have alternative liability under sub-rule (3) to pay an amount equal to 10% of the value of the exempted goods. This is because their final products were cleared against international competitiv .....

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t must be one of those specified in the second column of the table annexed to the Notification. Admittedly, copper wire is one of the inputs and the power cables manufactured and cleared by the assessee are final products covered by the Notification. However, the Department would like to deny the benefit of this Notification to copper wire manufactured by the assessee and captively consumed in their factory for the manufacture of insulated (power) cables. According to the Revenue, the assessee s .....

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it in an Electronic Hardware Technology Park, or (iv) to a unit in a Software Technology Park, or (v) under notification No. 108/95-Central Excise, dated the 28th August, 1995, or (vi) by a manufacturer of dutiable and exempted final products, after discharging the obligation prescribed in Rule 6 of the CENVAT Credit Rules, 2001. 6. From the above proviso to Notification No. 67/95-C.E. ibid, it appears that the bar created therein is not applicable to the inputs used in or in relation to the man .....

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