2007 (10) TMI 180

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..... mber (T)].-1. This appeal has been filed against the Order-in-Appeal No. 128/2004 Central Excise dated 11-1-2005 passed by the Commissioner of Central Excise Appeals, Bangalore. 2. The appellants manufactured parts of Vibration Isolation Systems and claimed exemption in terms of Notification No. 6/2002 dated 1-3-2002 Entry No. 21. The original authority denied the exemption on the ground that the exemption is available only to parts consumed inside the factory for production of vibration system and its parts. Therefore he demanded duty of Rs. 1,42,760/- for the period from December 2003 to June 2004 under Section 11A. Interest was also demanded. A penalty of Rs. 10,000/- was imposed. The appellants approached the Commiss .....

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..... ind the 'flanges' to be a part of WOEG. 2.2 The restriction being given to the exemption as part of the tower by reading Sr. No. 20 of lists, only on the grounds that flanges were not eligible since they were not consumed in the factory of production for the manufacture of tower has to be considered with the fact that tower of a Wind Mill being huge structures would only came into existence in the factory of manufacture as a design and in fact they would arise only in fact at site after assembly using the flanges. Consumption at site in tower is not questioned on facts nor it can be said that flange is not used where the tower came into existence. The concept of interpretation of "consumed in factory of production" and limiting the .....

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..... fied in Item No.1 to 20 above". 7. The impugned goods are meant for use for Non-Conventional renewable bagasse biomass/bio waste based cogeneration power project. Since the impugned item can be considered as parts of waste convention devices producing energy there is no doubt that they would be entitled for the exemption notification. However in terms of the above mentioned entry in item 21 parts should be consumed within the factory of production. By this stipulation the Government has made it impossible for any manufacturer who supplies these goods to other units to avail the benefit of the exemption notification. In other words, a plain reading of item 21 indicates that the exemption is available only for captive consumption. When .....

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