Captive consumption duty on refinery intermediates does not arise until clearance from the refinery.

Duty was not payable on an intermediate product used for captive consumption within the refinery because the goods had not been cleared from the refinery. The Tribunal relied on its earlier orders in the assessee's own case and an unchallenged appellate order treating the refinery as a warehouse under Rule 140(2) of the Central Excise Rules, 1944. On that basis, excise liability would arise only on clearance from the factory, and the same product raised on identical grounds attracted no different view. The issue was therefore decided in favour of the assessee.

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Issues: Whether duty was payable on an intermediate product used within the refinery for captive consumption when the goods had not been cleared from the refinery.

Analysis: The Tribunal followed its earlier orders in the assessee's own case and the unchallenged appellate order holding that the refinery was a warehouse under Rule 140(2) of the Central Excise Rules, 1944. On that view, no duty arose so long as the goods remained within the refinery, and liability would arise only upon clearance from the factory. Since the present dispute involved the same product and identical grounds, no different view was warranted.

Conclusion: Duty was not payable on the captively consumed intermediate product while it remained within the refinery, and the issue was decided in favour of the assessee.

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