TMI Blog2018 (11) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... udes the benefit to inputs used in or in relation to the manufacture of final products, which are exempted from whole of duty of excise leviable thereon or are chargeable to nil rate of duty. The Tribunal in the case of Rastriva Ispat Nigam Limited [2002 (8) TMI 188 - CEGAT, BANGALORE], has held that in absence of any definition, the products consumed within the factory would continue to be intermediate products, even when the intermediate products are further captively consumed to manufacture other goods. Ultimately, when certain goods are cleared from the factory, only those goods are to be considered as final products, which are liable to payment of duty - The Tribunal held that so long as duty is paid on the final product, the mere f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notices respectively. 3. The periods involved are from March, 1994 to June, 2006 and April, 1993 to June, 1998 respectively. 4. The appeals have been preferred by the Revenue. First Appeal No. E/49/2008 5.1 In all the 27 show cause notices, the same or similar facts are involved but for different periods. 5.2 DSP is, inter alia, engaged in manufacture of pig iron and steel scraps falling under chapter Sub-Headings 7201.00 and 7204.90 of the Central Excise Tariff in its integrated steel plant. Certain quantity of pig iron and steel scraps were, during the material period, used within the factory for manufacture of other excisable goods like castings of iron and steel, availing the benefit of exemption under No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, channels, joists, slag etc. which were used in the manufacture of machinery items, which in turn were further used within the factory of production for repair/maintenance of the machinery installed therein, upon availing benefit of exemption under Notification Nos. 67/95 and 65/95 respectively. Duty was demanded on the intermediate goods, i.e., the steel scraps on the ground of alleged wrong availment of exemption under Notification No. 67/95, inasmuch as they were used in the manufacture of capital goods/machinery parts which were subsequently used in the factory premises for repair and maintenance of the machineries installed. Second Appeal No. E/10/2008 6.1 In this case DSP consumed certain quantity of pig iron manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reiterated the grounds of appeals filed by the Revenue. 10. Dr.Samir Chakraborty, ld.Sr.Advocate, on behalf of the Respondents, submitted that there is no infirmity in the order passed by the adjudicating authority. It was submitted that the dispute in both the impugned orders is with reference to the captive consumption of certain goods within the factory. The Pig iron and the scrap which are starting point in the chain of manufacture of goods in the integrated steel plant of the respondents, have been used to manufacture a series of intermediate products. Some of the intermediate products have not been cleared from the factory, but used captively for repair of machinery or as parts for the manufacture of capital goods. He submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and Notification No. 202/88 dated May 20, 1988, the availment of exemption under both sets of Notification by DSP was correct as held by the Commissioner or the contention in the said show cause notices that the availment of exemption of duty on pig iron manufactured and captively consumed for manufacture of fluted mould, bottom plates etc. and consequent demand based thereon on the pig iron are sustainable ? 12. The Notification No.217/86-CE as well as successor Notification 67/95 grants exemption to goods, which are captively consumed within the factory for manufacture of further goods, but the provisions of the Notifications excludes the benefit to inputs used in or in relation to the manufacture of final products, which are exempte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al product, the mere fact that the duty was not paid on the intermediate products, would not disentitle the manufacture from the benefit of Notification 217/86-CE as well as successor Notification 67/95-CE. Similar views have been taken by the Apex Court in the case of Escorts Ltd. (supra). The ratio of the above decision is squarely applicable in the present case. 14. The CBEC vide Circular dated 06.12.1993 (surpa) has also clarified that the benefit of Exemption Notification 217/86 (Notification No.67/95) is to be permitted to intermediate products used capitvely in the manufacture of other intermediate products. 15. Even if the duty is held as payable on the pig iron used in the manufacture of intermediate products as per show-caus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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