2022-VIL-337-CESTAT-AHM-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – Rule 6(1) of Cenvat Credit Rules, 2004 – Manufacture of exempted final product – Usage of intermediate products – Entitlement of exemption – Appellant is engaged in manufacture of Brass parts of agricultural products – As per Notification No.3/2005-CE, Brass parts of Agriculture Products are exempted from payment of Central Excise duty – Appellants are also manufacturing intermediate products, viz. Brass Casted Rods at their own factory and also getting it manufactured at place of Job worker – On captive consumption of Brass Casted Rods which are used for manufacture of final product, Appellant claimed exemption under Notifications 67/95 and 83/94 – Revenue denied exemption and issued show cause notice proposing demand of excise duty on intermediate goods manufactured by Appellant and manufactured on job work basis – Commissioner confirmed demand of duty – Whether Appellant is entitled for exemption in respect of intermediate product used in manufacture of exempted final products – HELD – As per Notification No.67/95-C.E, exemption shall not apply to inputs used in or in relation to manufacture of final product which are exempt from whole of duty of excise – Though exemption is not available to intermediate goods used in exempted goods, but exception was provided in notification that even if final product is exempted and assessee discharge obligation prescribed in Rule 6 of the Rules, exemption on intermediate goods is available – Appellant had not availed Cenvat credit in respect of any of inputs used either in final product or in intermediate product, therefore, condition of Rule 6(1) of the Rules stands complied with – Since Appellant have discharged obligation under Rule 6(1) of the Rules, they are legally entitled for exemption in respect of their intermediate product i.e., Brass Casted Rods used in manufacture of exempted final products – Show cause notice demanding duty from appellant on goods manufactured by job worker also cannot be sustained – assessee appeal is allowed

Quick Search

/

Create Account



Log In



Forgot Password


Please Note: This facility is only for Subscribing Members.

Email this page



Feedback this page