Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2005 (1) TMI 468

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... dvat Credit of the duty paid on inputs, carbon paste; that they manufacture high carbon ferro manganese, low carbon ferro manganese, medium carbon ferro manganese and Silico manganese; that during the manufacture of High Carbon Ferro Manganese, ferro manganese slag is generated which is used captively in the manufacture of Medium and Low Carbon Ferro Manganese; that some quantity of Silico manganese is also used captively in the manufacture of Medium/Low Carbon Ferro Manganese; that the slag and silico manganese were used captively without payment of duty availing the benefit of Notification No. 217/86-CE dated 2-4-86; that the Appellants also clear their finished goods at nil rate of duty in terms of Notification No. 91/88-CE, dated 1-3-19 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nly in a case where there is not a complete chain to show that the inputs have ultimately been used in the exempted goods. He relied upon the decision in the case of Escorts Ltd. v. C.C.E., Delhi - 2004 (171) E.L.T. 145 (S.C.) where it has been held by the Supreme Court that the provisions of Rule 57C would have no application, if the intermediate products are used in the manufacture of dutiable final product and the mere fact that intermediate products are cleared from one factory of the Appellants to another factory of the Appellants would not disentitle the Appellant from claiming benefit of Notification No. 217/86. Reliance has also been placed on the decision in the case if Finolex Industries Ltd. v. C.C.E., Pune - 2003 (57) RLT 210 (C .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ect to the condition that the final products are not exempt from whole of the duty of Excise leviable thereon or is not chargeable to nil rate of duty. It is thus apparent from the Notification that the benefit of Exemption contained therein will be available only if the final product is not exempt from payment of duty and the goods are used within the factory of production. It is not the case of the Appellants that the iron or steel products are used within their factory where silico manganese is manufactured. The decision in the case of Escorts Ltd. will not be applicable as the facts are different. Notification No. 217/86 was amended by Notification No. 97/89-C.E., dated 1-3-89 by which it was provided that the benefit of Notification wi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates