https://www.taxtmi.com/caselaws?id=54472 The proviso to Notification No. 67/95-C.E. denies input exemption only where the inputs are used in exempt final products or goods chargeable to nil duty. It does not extend to inputs used to manufacture capital goods that are themselves exempt and captively consumed within the factory. Reading the proviso otherwise would undermine the notification's object by withholding exemption from the inputs while continuing to exempt the capital goods made from them. The stated position is that the proviso cannot be applied to deny exemption in such a manufacturing chain, and the Revenue's view is rejected. en-us Tue, 03 May 2005 00:00:00 +0530 Wed, 20 Oct 2010 11:47:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54472 The proviso to Notification No. 67/95-C.E. denies input exemption only where the inputs are used in exempt final products or goods chargeable to nil duty. It does not extend to inputs used to manufacture capital goods that are themselves exempt and captively consumed within the factory. Reading the proviso otherwise would undermine the notification's object by withholding exemption from the inputs while continuing to exempt the capital goods made from them. The stated position is that the proviso cannot be applied to deny exemption in such a manufacturing chain, and the Revenue's view is rejected. Case-Laws Central Excise Tue, 03 May 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54472