Case Law Details
Jindal Saw Ltd Vs C.C. E. & S.T.- Rajkot (CESTAT Ahmedabad)
The appellants are engaged in manufacture of iron and steel products. During the process of manufacture, scrap is generated and the same is either used within the factory of production for manufacture of goods or cleared on payment of duty. In so far as the goods are used captively for manufacture of other goods, benefit of Notification 67/1995-CE dated 16.03.1995 has been claimed.
CESTAT find that Notification 67/1995-CE dated 16.03.1995 prescribes exemption for goods captively consumed subject to the condition that the finished goods produced out of the same are cleared on payment of duty. Notification 67/1995-CE dated 16.03.1995 also prescribes that in case the obligation under Rule 6(3) of the Cenvat Credit Rules is fulfilled in respect of the goods cleared under full exemption then the benefit of Notification 67/1995-CE dated 16.03.1995 cannot be denied.
A perusal of proviso of clause – vi indicates that in case the obligation under Rule 6 of the Cenvat Credit Rules is fulfilled than the exemption to Notification 67/1995-CE dated 16.03.1995 cannot be denied. In the instant case a categoric claim has been made before the lower authorities that the appellant have fulfilled their obligation under Rule 6 of the CCR. In view of these facts, benefit of Notification 67/1995-CE dated 16.03.1995 cannot be denied to the appellant.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
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