2009 (2) TMI 643

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....The respondent is procuring inputs like tungsten wire, Molywire, graphite, ammonia gas, nitrogen gas etc. They manufacture intermediate products like filaments which are cleared captively for manufacture of bulbs. The vacuum bulbs are eligible for concessional rate of duty under Notification No. 10/2002 dated 1-3-2002, inter alia, subject to the condition that no credit of duty paid on inputs used in the manufacture of goods was taken under Rule 3 or Rule 11 of Cenvat Credit Rules, 2002. The original authority held that inasmuch as credit has been taken on the inputs like tungsten wire, Molywire etc., the assessee is not eligible for concessional rate of duty for the bulbs. Commissioner (Appeals) has held that the Cenvat credit has been tak....

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....the Appellants have stated that when the filaments were cleared captively for the manufacture of bulbs, they had availed exemption under Notification No. 10/96 dated 23-7-1996. I find that this Notification, provides full exemption to certain products which are used captively in the factory of production and in my view the exemption availed by the Appellants is perfectly in order. Since the goods are cleared for captively consumption they have not paid any duty. In view of the fact that they had maintained a single account of credit in respect of inputs used in the manufacture of wires/filaments, they had paid 8% of the amount of such filaments cleared for captive consumption. In this situation it can not be alleged that the Appellants had ....