2013 (10) TMI 667 - AT - Central Excise

Exemption under Notification No.67/95-CE Captive Consumption clearance to SEZ unit - Waiver of Pre-deposit - Whether clinkers manufactured and consumed captively in the manufacture of cement is eligible for exemption from payment of duty under Notification No.67/95-CE Held that - as per the proviso to notification No.67/95, benefit of captive manufacture exemption is not available to inputs used in or in relation to the manufacture of final products exempt from the whole of duty of excise or additional duty of excise thereon or chargeable to nil rate of duty other than those cleared to a unit in free trade zone or to a 100% EOU or to a unit in a Electronic hardware Technology Park, or to a unit in a Software Technology park or under notification No.108/95-CE while the clinker is not one of those enumerated in the list, is allowed Pre-deposit of duty and penalty is waived and recovery stayed till disposal of the appeal stay granted.

Summary

Issues:
Whether clinkers used in the manufacture of cement cleared to SEZ units are eligible for exemption from payment of duty under Notification No.67/95-CE dt. 16.3.95.

Analysis:
The judgment pertains to an applicant engaged in cement manufacturing facing a demand of duty, interest, and penalty for clinkers used in cement manufacture cleared to SEZ units during November 2010 to October 2011. The Tribunal considered the issue of exemption eligibility under Notification No.67/95-CE dt. 16.3.95. The applicant's consultant highlighted a previous Tribunal decision granting unconditional stay on a similar issue. The AR referenced the Hon'ble Gujarat High Court's decision. The Tribunal noted its own previous stay order in the appellant's case, where predeposit of duty and penalty was waived based on the proviso to the notification, allowing exemption for clinkers not falling under specified categories. Consequently, the Tribunal decided to waive the predeposit of duty, interest, and penalty until appeal disposal, in line with the earlier stay order.

This judgment underscores the Tribunal's interpretation of the exemption provision under Notification No.67/95-CE regarding clinkers used in cement manufacture for SEZ units. The decision relied on previous case law and the specific wording of the notification's proviso to determine exemption eligibility. By referencing the Tribunal's earlier stay order in the appellant's case and aligning with its findings, the current judgment extends the waiver of predeposit and stay on recovery until the appeal's final resolution. The Tribunal's approach reflects a consistent application of legal principles and precedents to address duty demands and exemption claims related to manufacturing inputs like clinkers in the cement industry.