https://www.taxtmi.com/caselaws?id=53857 Components of drip irrigation systems captively consumed in the manufacture of exempted irrigation equipment were treated as falling under Chapter Heading 84.24 and covered by Notification No. 56/95-C.E., attracting nil duty. On that basis, the proposed central excise demand could not survive, and the penalty founded on that demand also failed. The operative principle is that where intermediate goods are manufactured for and captively consumed in exempted irrigation equipment and the applicable exemption grants a nil rate, no excise duty is payable on those goods, and a penalty premised on the same demand is unsustainable. en-us Wed, 09 Mar 2005 00:00:00 +0530 Fri, 15 Oct 2010 15:49:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=53857 Components of drip irrigation systems captively consumed in the manufacture of exempted irrigation equipment were treated as falling under Chapter Heading 84.24 and covered by Notification No. 56/95-C.E., attracting nil duty. On that basis, the proposed central excise demand could not survive, and the penalty founded on that demand also failed. The operative principle is that where intermediate goods are manufactured for and captively consumed in exempted irrigation equipment and the applicable exemption grants a nil rate, no excise duty is payable on those goods, and a penalty premised on the same demand is unsustainable. Case-Laws Central Excise Wed, 09 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=53857