TMI Blog2017 (9) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... ire manufactured and captively used in the manufacture of insulated (power) cables in the factory during the material period - the appellant is entitled for benefit of N/N. 67/1995 ibid for intermediate product emerging during the course of manufacture of final product - appeal allowed - decided in favor of appellant. - Excise Appeal No.53687 of 2015, Excise Appeal No.50261-50262 of 2016 & Excise Appeal No.50060 of 2017 - A/55107-55110/2017-EX[DB] - Dated:- 7-7-2017 - Mr. (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) Shri Bipin Garg, Advocate for the Appellants Shri M R Sharma, AR for the Respondent ORDER Per: (Dr.) Satish Chandra The present appeals are filed against Order-i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al on record, we find that identical issue has come up before the Tribunal in the case of KEI Industries Ltd. and others Vs. CCE, Alwar [Final Order No.55611-55613/2016 dated 28.11.2016 where it was observed that:- 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 observed as under: 4. After co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 1 st March, 2006, as the case may be. From the above provision, 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 competitive bidding in terms of Notification No.6/2006C.E. ibid. 5. Against the above backdrop, one has to examine the scope of Notification No.67/95-C.E., dated 16-3-1995 (as amende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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.67/95C.E. ibid, it appears that the bar created therein is not applicable to the inputs used in or in relation to the manufacture of exempted final products cleared by a manufacturer of such exempted final products as well as dutiable final products. In other words, where the manufacturer manufactures both dutiable and exempted final products and uses the inputs in question in the manufacture of the exempted final products, he is entitled to the benefit of exemption from payment of duty on such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 notification No. 67/1995 ibid for intermediate product emerging during the course of manufacture of final product. Therefore, the impugned orders deserves no merits. Hence, the same are set aside. 10. Consequentially, the appeals are allowed with consequential relief, if any. 7. In the light of the above decision of the Tribunal on identical facts, we are of the view that the appellant is entitled for benefit of notification No.67/1995 ibid for intermediate product emerging during t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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