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TMI Blog2017 (1) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... 67/1995-CE dated 16/03/1995 in respect of stampers which are manufactured and consumed captively for manufacture of CDs. Revenue denied exemption on the ground that since the CDs are exempt from payment of duty, exemption on the intermediate product captively consumed is not admissible as per exemption Notification No. 67/1995-CE. 2. The contention of the Revenue is that stampers which are used captively is not a capital goods but it is an input. Therefore, exemption notification is not eligible. The appellant aggrieved by the decision of the Asstt. Commissioner in order dated 09/05/2005 filed an appeal before the Commissioner (Appeals) who agreeing with the views of the lower authority rejected the appeal and the decision of the lower aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central Excise 2008 (228) ELT 576 (Tri-Mumbai) c) Aurobindo Pharma Ltd v. Commissioner of Central Excise 2006 (205) ELT 199 (Tri.-Bang.) d) Kunnath Textiles v. Commissioner of Central Excise 2008 (229) ELT 628 (Tri.-Bang.) 5. We have carefully considered the submissions made by both the sides. We find that the stampers manufactured and used captively is falling under Chapter 85. As per the use of the stampers, we observe that the stampers are not getting consumed in the CDs though it is used for manufacture of CDs. Therefore, in our view the stampers falling under Chapter 85 qualifies as capital goods. The capital goods are exempted under Notification No. 67/95-CE dated 16/03/1995 even if it is used in the manufacture of exempted fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 95-C.E., dated 16-3-1995. The notification refers to capital goods as defined in Rule 57Q. The said rule refers to goods covered by Heading Nos. 82.02 to 82.11. Obviously therefore, being covered by Heading No. 82.07, "Tools and Dies" are capital goods, also for the purpose of Notification No. 67/95-C.E. The appellants have correctly pleaded that the ineligibility to duty exemption on the grounds of use of captively manufactured goods in the manufacture of fully exempt final products, applies only to "inputs". Since the "Tools and Dies" are capital goods, no such disqualification is prescribed for "capital goods". In other words, despite the use of captively manufactured "Tools and Dies" for manufacture of fully exempt final products, the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/95-C.E. The appellants have correctly pleaded that the ineligibility to duty exemption on the grounds of use of captively manufactured goods in the manufacture of fully exempt final products, applies only to "inputs". Since the "Tools and Dies" are capital goods, no such disqualification is prescribed for "capital goods". In other words, despite the use of captively manufactured "Tools and Dies" for manufacture of fully exempt final products, the duty concession is available." 6. From the facts of the case as discussed above and taking support of both the above referred decisions, we find that the stampers used for manufacture of CDs are capital goods falling under Chapter 85. Therefore, it is exempted under Notification 67/95-CE dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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