2009 (7) TMI 1116 - AT - Central Excise

Summary

Issues: Classification of goods under Chapter 54, eligibility for benefit of captive consumption under Notification No. 67/95-C.E.

Classification of Goods under Chapter 54:
The Tribunal allowed Appeal No. E/117/2006 by accepting the submission of the Revenue regarding the classification of the goods in question under Chapter 54. It was held that the inputs were leviable to basic duty, and no additional duty of excise was leviable on them. Therefore, the inputs could not be considered as exempt from the whole of the additional duty of excise leviable thereon.

Eligibility for Benefit of Captive Consumption under Notification No. 67/95-C.E.:
In Appeal No. E/82/2008, the assessees were held eligible for the benefit of captive consumption in terms of Notification No. 67/95-C.E., dated 16-3-1995. The Tribunal found that the inputs were exempt from additional duty of excise, not the final products. As a result, the benefit of captive consumption could not be denied to the assessees. The Tribunal clarified that the final products were leviable to basic duty, and no additional duty of excise was leviable on them. Therefore, the final products could not be considered exempt from the whole of the additional duty of excise leviable thereon. Consequently, the applications were allowed.

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