Case Law Details
The Hon’ble Supreme Court in the case of M/s Larsen & Toubro Limited v CCE held that the particular product which has been manufactured by the assessee for captive consumption will only be considered for any kind of exemption if covered by any exemption notification. The assessee, on the manufacture of any other product which is very similar to that particular product will not be able to claim exemption as the exemption notification should be given strict interpretation.
Facts of the Case
The Assessee was constructing its own cement plant for which they required Concrete Mix, which was prepared with the help of machinery installed there and the said Concrete Mix was captively consumed in the construction of the said cement plant by the Assessee. They did not pay any central excise duty on this product due to Notification No. 4/1997-CE dated March 01, 1997, which exempted Concrete Mix from payment of excise duty.
The Central Excise Officers visited the site and found that the L&T are manufacturing ready mix concrete and not concrete mix. According to the Assessee concrete was prepared at the site and was consumed captively, it had to be treated as Concrete Mix and, therefore, was eligible for exemption under the said Notification.
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