Captive consumption exemption under Excise notification upheld for intermediate tyre cord fabric used in manufacture of dutiable tyres.

Additional Excise Duty exemption under Notification No. 67/95-C.E. was held available for Dipped Nylon Tyre Cord Fabric captively consumed in manufacturing dutiable tyres, because the issue had already been decided in the appellants' own case on the same exemption for the intermediate product. The coordinate Bench treated that earlier Tribunal ruling as binding, noting that no stay had been granted by the Supreme Court. On that settled position, the contrary view in the impugned order could not be sustained, and the exemption benefit was admissible.

---

---

Issues: Whether Additional Excise Duty exemption under Notification No. 67/95-C.E. was available in respect of Dipped Nylon Tyre Cord Fabric captively consumed in the manufacture of dutiable tyres.

Analysis: The issue had already been decided in the appellants' own case in relation to other units, and that decision had extended the benefit of the exemption notification to the captively consumed intermediate product. No stay of that earlier decision had been granted by the Supreme Court, and therefore the coordinate Bench treated the earlier Tribunal ruling as binding. In view of that settled position, the contrary view taken in the impugned order could not be sustained.

Conclusion: The exemption benefit was admissible, and the impugned order was liable to be set aside.

---