Notification-based exemption for factory-consumed parts denied where vibration control systems were supplied to another unit for project use.

Exemption under Notification No. 6/2000-CE was confined to parts consumed within the factory of production for manufacture of the specified goods. Vibration control systems supplied to another unit were not consumed in the appellant's factory but cleared for use in a non-conventional energy project, so the notification condition was not satisfied. The exemption could not be expanded beyond its plain terms, and the earlier view in the appellant's own case was followed. The benefit of the notification was therefore unavailable and the demand was sustained.

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Issues: Whether the appellant was entitled to exemption under Notification No. 6/2000-CE for vibration control systems supplied to another unit, when the relevant entry allowed exemption only for parts consumed within the factory of production.

Analysis: The exemption entry was confined to parts consumed within the factory of production for manufacture of the specified goods. The goods were not consumed in the appellant's factory but were cleared to another unit for use in its non-conventional energy project. The condition in the notification could not be ignored, and the exemption could not be enlarged beyond its plain terms. Following the earlier decision in the appellant's own case, the benefit of the notification was held to be unavailable.

Conclusion: The exemption was not admissible and the demand was sustained.

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