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TMI Blog2024 (12) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... n behalf of M/s. General Motor India Pvt Ltd. Though the said tools and fixtures were retained by the appellant in their factory for further manufacture of parts on behalf of M/s. General Motors India Pvt Ltd but raised the sale invoice to M/s. General Motors India Pvt Ltd on which no excise duty was paid. Out of 5 tools and fixtures for which 5 invoices were raised, 2 numbers of tools and fixtures after use for substantial period cleared to their own unit at Pune. Even at that stage also no excise duty was paid. The case of the department is that when the appellant issued the sale invoice to M/s. General Motors India Pvt Ltd and even though the goods were retained in the factory and used for further manufacture of parts of motor vehicle, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 201 Ashok Iron Works Ltd Vs. Commissioner of Central Excise, Belgaum - 2004 (02) LCX 0202 Commissioner of Central Excise, Chennai Vs. Sheet Metal Industries - 2002 (08) LCX 0071 Tenneco Rc India Pvt Ltd Vs. Commissioner of Central Excise, Chennai - 2008 (07) LCX 0281 As regard the goods cleared to their own unit located at Pune, he submits that since their Pune unit is eligible for Cenvat Credit the whole exercise of payment of duty by the appellant and availment of Cenvat Credit by the Pune unit amounts to revenue neutral. Therefore no malafide intention can be attributed to the appellant with intention to evade payment of duty therefore the demand related to the clearance made to the Pune unit being under extended period of lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strongly disagree with this contention of the revenue for the reason that firstly the excise duty is payable only at the time of clearance of the goods secondly in the present case the tools and fixtures manufactured by the appellant is used within the factory as captive consumption for manufacture of other excisable goods that is parts of motor vehicle which are cleared on payment of duty to M/s. General Motors India Pvt Ltd. The said captive consumption is clearly covered by exemption Notification No. 67/95-CE dated 16.03.1995 therefore no excise duty is payable on tools and fixtures manufactured and captively used even though the sale invoice in favour of M/s. General Motors India Pvt Ltd were issued. This issue has been settled in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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