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TMI Blog2016 (12) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules 2004 and clause (vi) under the proviso to N/N.67/95-CE ibid would show that the assessee’s claim for exemption from payment of duty on copper wire under the Notification was not hit by the opening portion of the proviso to the Notification - assessee was not liable to pay CE duty on copper wire manufactured and captively used in the manufacture of insulated (power) cables in the factory during the material period. As facts of the case are not disputed that the appellant is manufacturing final products and clearing the same on payment of duty in the open market and to Mega Power Projects without payment of duty. In that circumstances, the appellant is entitled for benefit of N/N. 67/1995 ibid for intermediate product emerging durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise duty. Consequently, it was alleged that the intermediate goods are removed clandestinely for captive consumption with an intent to evade payment of duty. Proceedings were initiated against the appellants which were adjudicated and resulted in passing of impugned orders by confirming the demand of duty along with interest and penalty on main appellant and on Shri S N Hashmi (Commercial). 3. Aggrieved from the said order, appellants are before us. 4. Shri Bipin Garg, learned advocate appearing for the appellants submits that the cable at the stage of armoured cable is not marketable, therefore they are not liable to pay the duty. Moreover, as the appellants are manufacturing both dutiable as well as exempted final goods, in that cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared by the assessee without payment of duty during the relevant period satisfied this condition. Against this backdrop, one has to read the provisions of Rule 6(6)(vii) of the CENVAT Credit Rules, 2004. This sub-rule reads as follows :- (6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either (i) (ii) (iii) (iv) (v) (vi) (vii) all goods which are exempt from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under Section 3 of the said Customs Tariff Act when imported into India and supplied against Internationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like to deny the benefit of this Notification to copper wire manufactured by the assessee and captively consumed in their factory for the manufacture of insulated (power) cables. According to the Revenue, the assessee s claim is hit by the proviso to the Notification, which reads as under : Provided that nothing contained in this notification shall apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of the duty of excise or additional duty of excise leviable thereon or are chargeable to nil rate of duty, other than those goods which are cleared, (i) to a unit in a Free Trade Zone, or (ii) to a hundred per cent Export Oriented Undertaking, or (iii) to a unit in an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere not applicable, by virtue of sub-rule (6), to the assessee who were clearing their exempted final products against international competitive bidding in terms of Notification No. 6/2006-C.E. ibid. In other words, a conjoint reading of sub-rule (6) of Rule 6 of the CENVAT Credit Rules, 2004 and clause (vi) under the proviso to Notification No. 67/95-C.E. ibid would show that the assessee s claim for exemption from payment of duty on copper wire under the Notification was not hit by the opening portion of the proviso to the Notification. 7. In the result, the assessee was not liable to pay CE duty on copper wire manufactured and captively used in the manufacture of insulated (power) cables in the factory during the material period. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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