Case Law Details
Alstom T & D India Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
Introduction: In the case of Alstom T & D India Ltd. vs. Commissioner of GST & Central Excise, CESTAT Chennai, a crucial issue regarding the exemption from excise duty on goods used for captive consumption was addressed.
Detailed Analysis: The appellant, Alstom T & D India Ltd., is involved in the manufacturing of Relays and Control Panels categorized under Chapter 85 of the Central Excise Tariff Act, 1985. They used these relays for captive consumption in the production of control panels and sought exemption under Notification No. 67/95-CE dated 16.03.1995, as amended.
The contention arose when the department questioned the eligibility of the appellant for exemption under Notification No. 67/95-CE for goods that were captively consumed. They issued two show cause notices demanding duties for specific periods, along with interest and penalties. The original authority and the Commissioner (Appeals) both upheld the duty demand.
The crux of the matter revolved around the interpretation of the term “discharge the obligation” under Rule 6 of Cenvat Credit Rules, 2004, as mentioned in the notification. The appellant argued that they had complied with the provisions of Rule 6, and the requirement to pay 10% was not applicable due to certain exceptions specified in Rule 6.
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