Appeal Dismissed: Exemption Granted for Clinker Used in Cement Manufacturing

The Tribunal dismissed the revenue's appeal, affirming the respondent's eligibility for the exemption under Notification 67/95 CE for clinker consumed in the manufacture of cement cleared without duty payment to SEZ units. The decision was based on precedents set by previous cases involving similar issues, leading to a favorable outcome for the respondent.

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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.

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