9911796707
TMI Blog2008 (2) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... try, Advocate, for the Respondent. [Order per T. K. Jayaraman, Member (T)]. -1. Revenue has filed this appeal against Order-in-Original No. 04/2006 dated 6-2-2006 passed by the Commissioner of Customs Central Excise, Tirupati. 2. The issue involves interpretation of notification 67/95 and Rule 6 of Cenvat Credit Rules. 3. The respondents are manufacturers of Pig Iron, Cement and Ductile Iron Pipes. All these items are dutiable. They are having separate divisions for the manufacture of these three excisable products. The raw materials for the manufacture of DI Pipes are Pig Iron and Cement. During the period from April 2004, February 2005, the respondents availed exemption for the Pig Iron and Cement manufactured by them under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondents are captively consumed. They would be entitled for the benefit of notification 67/95 only when the final products are cleared on payment of duty. In the present case a part of the final products are cleared on the basis of two exemption notifications. Therefore, the benefit of exemption notification 67/95 will not be applicable. According to the Revenue, in a situation like this, even Rule 6 of Cenvat Credit Rules is not applicable. The learned Departmental Representative reiterated the grounds of appeal. 4. Shri G.P. Sastry, learned Advocate, appeared on behalf of the respondents. We heard both sides. 6. It is seen that the appellants manufacture Pig Iron, Cement and also DI Pipes, which are all excisable and dutiable. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in a factory and used within the factory of production; (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 manufacture of final products specified in column (2) of the said Table; From the whole of the duty of excise leviable thereon which is specified in the Schedules to the Central Excise Tariff Act, 1985 (5 of 1986) or additional duty of excise leviable thereon which is specified in the First Schedule to the said Special Importance Act. 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case, the inputs are Pig Iron and Cement. They are definitely covered in column 1 of the table. The final product is DI Pipes, they are also covered in column 2 of the table. Therefore, both the inputs and final products are covered. Then what is the hitch? According the Revenue, the exemption cannot be given to Pig Iron and Cement, because, the final product DI Pipe is partly cleared without payment of duty by availing exemption notifications. Revenue has ignored the fact that when the respondent cleared the DI Pipes on the basis of exemption notification, they had also paid 10% / 8% of the sale value of the exempted goods in terms of Rule 6 of Cenvat Credit Rules for a part of the period and for the remaining period under dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent is clearly covered by the notification. No doubt, the captive consumption notification is not applicable when the final products are exempted. However, when the final products are partly cleared on payment of duty and partly exempted when the respondent pays 10% on the sale value of the goods or maintain separate inventory and accounts of inputs used for exempted and dutiable goods, it is as though the respondents discharge the duty liability on the entire goods cleared including the exempted goods. Because, by following Rule 6 they had paid 10% of the sale value of the exempted goods. However, when they maintain the separate inventory and accounts of the inputs used for dutiable DI Pipes and exempted DI Pipes they discharge the obliga ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
