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TMI Blog2007 (7) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... l as penalty of equal amount of duty under Section 11AC of the said Act and interest on the demand under Section 11A of that Act. The matter in controversy before the authority below was whether Central Excise duty was leviable on the containers consumed captively for packing of the duty exempted goods manufactured by the Appellant. The allegation of the Department was that the appellant manufactured, cleared and captively consumed HDPE jar/metal containers for packing of their final product without payment of duty although the final product is exempt from such levy w.e.f. 1-3-2005 while the appellant pleaded that it was entitled to the benefit of exemption in terms of Notification No. 67/95 dated 16-3-1995 when read with Notification No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m availing exemption in respect of the containers in question. Accordingly, the containers used in relation to manufacture should receive a rational interpretation to hold that the containers were captively consumed and entitled to the respective benefit under law. 3. The ld. JDR supported order of adjudication and submitted that the appellant is not entitled to the benefit of the notification because the final product is exempt. 4.1 Heard both sides and perused the record. After full length of hearing by both sides and on appreciation of the principle laid down by the Hon'ble Supreme Court, we are inclined to waive pre-deposit and decided to dispose the appeal on its own merit. 4.2 The term "consumption" came for interpretation by the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.4 The Hon'ble Supreme Court also had followed the judgment in AIR 1979 SC 1721 in the case of Kathiawar Industries Ltd. v. Jaffrabad Municipality wherein it was held that "the precise meaning to be given to those words would depend upon the context in which they are used. It is in a primary sense that the word "consumption" is understood as using the article in such a manner as to destroy its identity. It has a wider meaning which does not involve the complete using up on the commodity."' 5. Following the judgment of the Hon'ble Supreme Court in the aforesaid cases, we are of the view that what that is understood as, "consumption" in view, of the judgment of the Hon'ble Supreme Court reported in M/s. Anwarkhan mahboob Co. case (supra), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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