https://www.taxtmi.com/caselaws?id=84046 Cotton yarn manufactured in a composite mill and captively consumed in the spinning department was treated as removed at the time of such consumption under Rule 9(1) and its Explanation. Because the exemption notification then in force applied when the yarn was manufactured and deemed removed, no excise duty was payable on that yarn. A later withdrawal of the exemption could not retrospectively fasten duty on goods already captively consumed; liability depended on the date of deemed removal, not on the later clearance of the finished fabric. The revenue appeals failed, while the assessee succeeded on the substantive duty issue, with the refund claim remitted for fresh adjudication. en-us Tue, 04 Apr 1995 00:00:00 +0530 Fri, 11 Jul 2014 14:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84046 Cotton yarn manufactured in a composite mill and captively consumed in the spinning department was treated as removed at the time of such consumption under Rule 9(1) and its Explanation. Because the exemption notification then in force applied when the yarn was manufactured and deemed removed, no excise duty was payable on that yarn. A later withdrawal of the exemption could not retrospectively fasten duty on goods already captively consumed; liability depended on the date of deemed removal, not on the later clearance of the finished fabric. The revenue appeals failed, while the assessee succeeded on the substantive duty issue, with the refund claim remitted for fresh adjudication. Case-Laws Central Excise Tue, 04 Apr 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84046