9911796707
TMI Blog1992 (8) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... at Arkonam (Tamilnadu). This factory at Arkonam manufactures tyres falling under T.I. 16, Rubber products falling under T.I. 16A and other miscellaneous rubber goods. The masticated rubber was received by this factory at Arkonam from the appellants factory at Kottayam for further manufacture of tyres and other rubber goods. According to the appellants they are entitled to exemption from excise duty equal to the excise duty paid on inputs used in the manufacture of finished excisable goods since inputs Synthetic rubber, Carbon black and Rubber processing chemicals falling under TI. 16AA, 64 65 used in the manufacture of tyres, tubes and flaps specified in the table annexed to the Notification No. 201/79-C.E., dated 1-6-1979. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification that no credit of duty should be allowed in respect of any material or component part used in the manufacture of finished excisable goods if such finished excisable goods are exempted from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty but there is no such stipulation in the Notification No. 95/83. In the absence of such stipulation and mere following the procedure under Rule 56A for the purpose of claiming exemption never mean all the conditions of the said rule are applicable nor benefit under this notification can be denied. He said that this issue was well considered by the Tribunal in the case of Vikrant Tyres v. C.C.E., Bangalore - 1988 (38) E.L.T. 301 with reference to old Notification No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the availment of benefit of exemption under Notification No. 95/83-C.E. 5. In reply Shri Ignatius submitted that masticated rubber is a composite product consisting of ingredients Synthetic rubber. Carbon Black and Rubber processing chemicals on which credit was taken and masticated rubber was an intermediate product used in the manufacture of finished product. He said that masticated rubber was not cleared on payment of duty and since consignmentwise was transferred and not on payment of duty, benefit of exemption in terms of 95/83 has to be extended following the ratio of Vikrant Tyres. He said that purpose of the notification will be defeated if the benefit is not given on the ground that the consumption of the 3 raw materials w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... XXX XXX 7. On going through the Notification it is clear that Notification does not have any condition that there should be any nexus between the inputs and output. The Tribunal had already expressed this view with reference to Notification No. 95/79 holding that there need not be any nexus between the inputs and outputs since no condition regarding payment of duty is contained anywhere in the Notification. Next question arises, whether the inputs described in column 3 have been used in the outputs described in column 5 for the purpose availing exemption in terms of Notification No. 95/83. We are not convinced with the argument of the DR that benefit cannot be extended since consumption of the 3 raw materials was not dire ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
