https://www.taxtmi.com/caselaws?id=122564 Notification No. 67/95-C.E. was construed to extend exemption to goods captively used within the factory where they were employed in activities integrally connected with manufacture, including internal manufacturing operations, repair, maintenance and fabrication. Only the quantity admittedly used for purposes outside manufacture remained dutiable. The discussion also notes that where the principal duty demand on the exempt portion does not survive, mandatory penalty under Section 11AC is not justified, confiscation cannot be sustained if the goods are not seized or available, and only a reduced penalty may be retained for accounting lapses and delayed payment on the non-exempt quantity. en-us Wed, 11 Apr 2007 00:00:00 +0530 Tue, 14 Aug 2012 16:22:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122564 Notification No. 67/95-C.E. was construed to extend exemption to goods captively used within the factory where they were employed in activities integrally connected with manufacture, including internal manufacturing operations, repair, maintenance and fabrication. Only the quantity admittedly used for purposes outside manufacture remained dutiable. The discussion also notes that where the principal duty demand on the exempt portion does not survive, mandatory penalty under Section 11AC is not justified, confiscation cannot be sustained if the goods are not seized or available, and only a reduced penalty may be retained for accounting lapses and delayed payment on the non-exempt quantity. Case-Laws Central Excise Wed, 11 Apr 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122564