2014 (4) TMI 600 - AT - Central Excise

Exemption under under Notification No.67/95-CE dt. 16.3.95 - 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 dt. 16.3.95 - Held that - application for waiver of pre-deposit of duty together with interest and penalty confirmed on clinkers manufactured as an intermediate product in the course of manufacture of cement cleared to SEZ units, for the reason that, as per the proviso to notification No.67/95-CE dated 16.3.95, 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 an Electronic hardware Technology Park, or to a unit in a Software Technology park or under notification No.108/95-CE dated 28.8.95, while the said clinker is not one of those enumerated in the list - Stay granted.

Summary

Issues involved:
1. Eligibility for exemption from payment of duty on clinkers manufactured and consumed captively in the manufacture of cement under Notification No.67/95-CE dt. 16.3.95.

Analysis:

Issue 1: Eligibility for exemption from payment of duty on clinkers:

The judgment revolves around the issue of whether clinkers manufactured and consumed captively in the manufacture of cement are eligible for exemption from duty under Notification No.67/95-CE dt. 16.3.95. The Tribunal referred to a previous decision in the appellant's own case where it was held that the benefit of captive manufacture exemption is not available to inputs used in or in relation to the manufacture of final products exempt from excise duty. However, the Tribunal allowed the waiver of pre-deposit of duty and penalty in the current case based on the earlier decision and stayed the recovery until the appeal's disposal. This decision was influenced by a previous order in the case of Ultratech Cements Ltd. Vs CCE, indicating a nuanced interpretation of the relevant provisions and exemptions under the law.

This judgment highlights the importance of legal precedents and interpretations in determining the eligibility for duty exemptions, especially in cases where the manufacturing process involves intermediate products like clinkers. The Tribunal's reliance on its previous decision in the appellant's case demonstrates a consistent approach to interpreting the law and applying exemptions based on specific criteria outlined in the relevant notifications. The decision to waive pre-deposit of duty and penalty showcases a balanced consideration of the appellant's circumstances while ensuring compliance with the legal framework governing duty exemptions in the manufacture of cement products.