2018 (2) TMI 71 - AT - Central Excise

Benefit of N/N. 67/95-CE, dated 16.03.1995 - the appellant started using the molasses captively for further conversion into spirit under the claim of captive consumption - Held that - the N/N. 67/95-CE nowhere lays down the condition of ownership for the goods used captively - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Interpretation of Notification No.67/95-CE for captive consumption of goods.
2. Ownership requirement for availing exemption under the notification.
3. Application of the period of limitation for raising demands by the Revenue.

Analysis:
1. The appellant processed raw sugar into white sugar on a job work basis and used molasses emerging during the process for further conversion into spirit under Notification No.67/95-CE. Revenue objected, claiming the appellant was not the owner of molasses. Show-cause notices were issued for duty demands for the period from July 2005 to August 2006.

2. The original adjudicating authority confirmed the duty demand, upheld by the Commissioner (Appeals). The appellant cited Tribunal decisions in their favor, emphasizing that ownership of molasses is not a condition under Notification No.67/95-CE. The Tribunal held that the benefit of the exemption cannot be denied based on ownership, citing precedents where ownership was deemed irrelevant for availing benefits under notifications.

3. The Tribunal observed that the demand beyond the normal limitation period was unjustified as there was no evidence of suppression or misstatement by the appellant to evade duty payment. Relying on previous decisions, the Tribunal set aside the impugned order, allowing the appeal and providing consequential benefits as per law. The judgment emphasized that the condition of ownership was not a valid ground to deny the benefit of the notification, and the demand raised beyond the limitation period lacked merit due to the absence of evidence of malafide intent on the part of the appellant.