https://www.taxtmi.com/caselaws?id=85066 Processed vegetable non-essential oils used within the factory in the manufacture of paints and varnishes remained eligible for exemption under Notification No. 69/84-C.E. even though resin emerged at an intermediate stage. The intermediate resin did not change the character of the oils as inputs for the final dutiable products, and an intermediate product is a relative concept where it is not cleared as such but consumed further in the same factory. Rule 57D(2) supported the position that exemption or credit cannot be denied merely because an intermediate product is exempt or nil-rated, provided it is captively consumed in making the final product. The nil rate on resin therefore did not bar the exemption. en-us Fri, 23 Feb 1996 00:00:00 +0530 Tue, 02 Aug 2011 15:51:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85066 Processed vegetable non-essential oils used within the factory in the manufacture of paints and varnishes remained eligible for exemption under Notification No. 69/84-C.E. even though resin emerged at an intermediate stage. The intermediate resin did not change the character of the oils as inputs for the final dutiable products, and an intermediate product is a relative concept where it is not cleared as such but consumed further in the same factory. Rule 57D(2) supported the position that exemption or credit cannot be denied merely because an intermediate product is exempt or nil-rated, provided it is captively consumed in making the final product. The nil rate on resin therefore did not bar the exemption. Case-Laws Central Excise Fri, 23 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85066