2018 (4) TMI 942 - AT - Central Excise

Appeal Dismissed: Exemption Granted for Clinker Used in Cement Manufacturing

Commissioner of Central Excise, Tiruchirapalli Versus The India Cements Ltd.

The Tribunal dismissed the revenue's appeal, affirming the respondent's eligibility for the exemption under Notification 67/95 CE for clinker consumed in ... N/N. 67/95 CE dated 16.3.95 - clinker manufactured by the appellants and captively consumed in the manufacture of cement that was removed without payment of duty to the units situated in SEZ - Held that: - issue stands covered by the decision in the case of Ultratech Cements Ltd, vs CCE and ST, Tiruchirapalli [2015 (10) TMI 1058 - CESTAT CHENNAI], where it was held that appellants are eligible for exemption under Notification 67/95-CE on clinker captively consumed for manufacture of cement cleared to SEZ units/developers without payment of duty for both the periods prior to and after the amendment of SEZ Act - appeal dismissed - decided against Revenue. Issues Involved:Whether the exemption under Notification 67/95 CE dated 16.3.95 is applicable to the clinker manufactured by the appellants and captively consumed in the manufacture of cement that was removed without payment of duty to the units situated in SEZ.Analysis:The case involved a dispute regarding the applicability of the exemption under Notification 67/95 CE to clinker consumed in the manufacture of cement cleared without payment of duty to SEZ. The respondents, cement and clinker manufacturers, availed the captive consumption benefit under the said Notification. However, the Department contended that the respondents were not eligible for the exemption, leading to the issuance of a Show Cause Notice demanding duty, interest, and penalties. The Original Authority confirmed the duty demand and penalties, which was set aside by the Commissioner (Appeals), prompting the revenue to appeal before the Tribunal.During the proceedings, the revenue reiterated their grounds of appeal, while the respondent's counsel cited a Tribunal decision in favor of the respondent. The Tribunal noted that the issue at hand was similar to cases involving Ultratech Cements Ltd and Dalmia Cements Bharath Ltd, where judgments had been passed in favor of the assessees. Relying on the precedent set by these cases, the Tribunal found the department's appeal lacking in merit and subsequently dismissed it.In conclusion, the Tribunal held that the appeal filed by the revenue lacked merit based on the precedents set by previous cases involving similar issues. The decision was made in favor of the respondent, affirming their eligibility for the exemption under Notification 67/95 CE for clinker consumed in the manufacture of cement cleared without duty payment to SEZ units.