2007 (5) TMI 396

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....ent. [Order per : P.G. Chacko, Member (J)] - The appellants are a small scale industrial unit engaged in the manufacture of 'Plastic woven sacks'. They convert PP granules (raw material) into strips (intermediate), which are then used in the manufacture of sacks (final product). The final product is specified for SSI benefit, but the intermediate has been expressly excluded from the coverage of....

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.... The case of the Revenue is that, as the strips were used in the manufacture of sacks which were exempt from payment of duty under the SSI Notification, the benefit of Notification No. 67/95-C.E. would not be available to the assessee. This claim of the Department is based on the proviso to the main paragraph of Notification No. 67/95-C.E., which reads as under :- "[Provided that nothing containe....

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....rescribed in [Rule 6 of the Cenvat Credit Rules, 2001.]" Ld. SDR has reiterated this case. Ld. Counsel for the appellants has made an endeavour to construe the above proviso to be meaning that the benefit of the Notification is not available to the intermediate product (covered by the expression "input" vis-a-vis final product) where the final product is exempt from the whole of the duty of excis....