TMI Blog2017 (3) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... in drawing the raw materials from the Bonded Warehouse is a part of the manufacturing activity, integrally connected in the process of manufacture, and accordingly, I hold that they are entitled to exemption of duty under N/N. 3/2005-CE being a captive consumption under the facts and circumstances - the Customs Private Bonded Warehouse of the appellant is a part of the factory as defined u/s 2 (e) of CEA - appeal allowed - decided in favor of appellant. - E/662/2008, 2780/2009, 888/2010, 122/2011, 2301/2011, 3885/2012-EX[SM] - FINAL ORDER NO. 70175-70180/2017 - Dated:- 13-2-2017 - Mr. Anil Choudhary, Member (Judicial) Shri Hrishikesh, Advocate for the Appellant (s) Shri Pawan Kumar Singh, Supdt. (A.R.) for the Department (s) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S. No. Appeal No. OIA No. OIO No. SCN Period Duty Involved (Rs.) 1 E/662/2008 02-CE/MRT-II/2008 dated 09.01.2008 40(03/7) Dem/PAL/2007 dated 29.06.2007 C.No. VI (17)/03/Adj./PAL/2007 dated 18.01.07 Jan, 2006 to Dec, 2006 Rs.17,673/- 2 E/2780/2009 209-CE/MRT-II/2009 dated 30.07.2009 501(68/07) Dem/PAL/2008 dated 22.10.2008 C.No. VI (17)/10/PAL/Adj./08/581 dated 31.01.2008 Jan, 2007 to Dec, 2007 ₹ 17,144/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remises of appellant (Pasupati Acrylon Ltd.). Further, the license stipulates that it has been granted for the manufacture of excisable goods of Chapter 55. As per definition of factory, under Section 2(e) of Central Excise Act 2(e) Factory means any premises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on; 3(c) Thus, clearance of ACN from the bonded warehouse is nothing but an activity connected with production/manufacture of excisable goods. 3(d) Reliance is placed on following case laws- CCE Vs. Biocon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including the precincts thereof. Hence, Nitrogen gas manufactured in the factory and consumed in the warehouse is to be treated as captively consumed within the factory of production and, therefore, exempted from payment of duty. Rejecting the contention of the assessee, the Ld. Commissioner observed that the licence for bonded warehouse is primarily granted for deposit and storage of imported goods without payment of duty. Whereas a factory, licensed under the Central Excise Act, is for the purpose of carrying out the manufacturing activity of specified excisable goods. He further observed that in facts of this case, just because the portion licenced for the Customs Private Bonded Warehouse is located within the factory premises, where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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