Captive clinker used for exempt cement is not dutiable; Tribunal applied Supreme Court precedent and allowed exemption.

Duty on clinker captively consumed in the manufacture of exempt cement was held not payable, because the issue was covered by the assessee's own case before the Supreme Court, which had ruled that such captive clinker is not liable to duty when used to produce exempt final cement. Applying that binding principle, the Tribunal held that the exemption benefit was available and the demand could not be sustained, with the impugned order set aside in favour of the assessee.

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Issues: Whether duty was payable on clinker captively consumed in the manufacture of exempted cement and whether the benefit of the exemption notification was available.

Analysis: The issue stood covered by the appellant's own case before the Supreme Court, which had held that clinker captively consumed for manufacture of final exempted cement is not liable to duty. Following that binding , the Tribunal held that the appellant was entitled to the exemption and the demand could not be sustained.

Conclusion: Duty was not payable on the clinker captively consumed in the manufacture of cement, and the impugned order was set aside in favour of the assessee.

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