9911796707
TMI Blog2006 (3) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned order, Commissioner (Appeals) has held that clinker is liable to pay Excise duty, and appellants were not eligible for exemption under Notification No. 67/95 (which allowed exemption to goods manufactured in a factory and used as inputs in the same factory). We may note the Commissioner s findings : This contention is wrong as what has been manufactured out of intermediate goods i.e. clinker is only exempted cement. Thus the final product is cement and that is exempt from duty. The appellants are trying to impose definition of final product from Cenvat Credit Rules which is not warranted. The interpretations have to be seen/restricted to the wording of notification only. As per notification, the inputs are the goods cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of final products which are exempted from the whole of duty of excise or additional duty of excise leviable thereon or are chargeable to nil rate of duty . 4. In the instant cases, on account of the factories being located in exempted areas (Notification No. 50/2003), the final product, namely, cement remains exempted. It may also be noted here that Notification No. 50/2003 excludes (S. No. 4 for Table No. 1) clinker from its purview. Thus, on the face of it, the proviso bars the clinker produced in these factories from the benefit of exemption, as the final product, cement is exempt from duty. 5. All the same, the submission of the learned Consultant for the appellants is that exclusion in the proviso in regard to inputs use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actory of production. - In exercise of the powers conferred by sub-section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944, read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), (hereinafter referred to as the said Special Importance Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempt - (i) ............. (ii) goods specified in column (1) of the Table hereto annexed (hereinafter referred to as inputs ) manufactured in a factory and used within the factory of production in or in relation to the manufacture of final products specified in column (2) of the said Table; 2 [from the who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 67/95-C.E., dated 16-3-1995 as amended by Notifications No. 20/96-C.E., dated 23-7-1996; No. 11/97-C.E., dated 1-3-1997; 59/97-C.E., dated 30-8-1997; No. 32/2000-C.E., dated 31-3-2000; No. 35/2000-C.E., dated 5-4-2000; No. 31/2001-C.E., dated 1-6-2001; No. 35/2001-C.E., dated 29-6-2001; No. 11/2002-C.E., dated 1-3-2002 and No. 16/2003-C.E., dated 1-3-2003.] 8. Present appellants claim is under Sl. No. (ii) as the clinker in question is being produced and captively consumed as input . It is to be noted that exemption in Sl. No. (ii) is in regard to goods specified in column 1 of the Table hereto annexed (hereinafter referred to as inputs) manufactured in a factory and used within the factory of production in or in relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a product that emerges at an intermediate stage of production is no bar to enjoying Modvat credit. The contention is that exemption to clinker under notification No. 67/95 does not interfere with satisfying Rule 6 of CENVAT Credit Rules. 10. We are unable to accept the claim of the appellants. The claim is in relation to an item (clinker) produced in a factory and used as an input in the same factory in the production of a final product. The use of clinker is in the production of cement. Therefore, cement (final product) should satisfy the provisions of Rule 6 of CENVAT Rules. Rule 6 deals with CENVAT credit in cases where inpus are used in the production of dutiable and exempt goods. That is not the ease here. Cement (final product) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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