2015 (8) TMI 582 - SCH - Central Excise

Duty demand - Captive consumption - Exemption from duty - whether the inputs/parts which were used for manufacturing of Railway wagons are to be subjected to Excise duty - Held that - these are intermediate products and captively used and would come within the definition of manufacture . However, before these goods could be exigible to the Excise duty, it was also incumbent upon the Department to prove that the said parts were marketable. - Department did not lead any evidence to demonstrate that these products are marketable - Impugned order is set aside - Decided in favour of assessee.

Summary

The Supreme Court ruled in favor of the appellant in a case involving excise duty on inputs used for manufacturing railway wagons. The appellant argued that the goods in question were not marketable, and the Department failed to prove otherwise. The Court set aside the Tribunal's order and allowed the appeal.