Nil excise duty on brass sheets used for utensils and handicrafts; captive consumption exemption became unnecessary.

Untrimmed brass sheets and circles used captively in making utensils and handicrafts were treated as attracting nil central excise duty because brass goods under Heading 7409 meant for such manufacture fall within the nil-rate position affirmed by the Supreme Court. As the goods were undisputedly used in that manufacture, they were not liable to duty, and the separate question of captive consumption exemption under Notification No. 67/1995 did not arise. The Revenue's challenge therefore failed.

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Issues: Whether untrimmed brass sheets and circles manufactured and captively consumed in the manufacture of utensils and handicrafts were liable to central excise duty, and whether exemption under Notification No. 67/1995 dated 16.03.1995 was applicable.

Analysis: The Tribunal followed the Supreme Court ruling that brass goods falling under Heading 7409 and intended for use in the manufacture of utensils and handicrafts attract nil rate of duty. Since the untrimmed brass sheets were undisputedly used in such manufacture, they were themselves treated as attracting nil duty. In that view, the question of invoking the captive consumption exemption under Notification No. 67/1995 dated 16.03.1995 did not arise.

Conclusion: The untrimmed brass sheets and circles were not liable to central excise duty, and the Revenue's appeal failed.

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