2014 (2) TMI 1006

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....nt of duty to HPBP, who was availing Cenvat credit. HPBP was utilizing input in the manufacture of dutiable and exempted goods in so far as, supply to International Competitive Bidding (ICB) Project was exempted from duty vide Notification No. 6/2006-C.E., dated 1-3-2006. The common input was used in the manufacture of dutiable and exempted final products, but, in view of Clause (iv) of sub-rule (6) of Rule 6 of Cenvat Credit Rules, 2004, the provisions of sub-rules (1), (2), (3) and (4) of the said Rule 6 shall not be applicable. No dispute was raised. After July, 2007, both the units were merged and therefore no duty was paid on Steel Pipes captively used in the manufacture of dutiable and exempted final products in terms of Notification ....

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....urther submits that if there is a doubt in the said notification, it will come in favour of the Revenue as held by the Hon'ble Supreme Court in the case of Liberty Oil Mills Pvt. Ltd. v. CCE, Bombay - 1995 (75) E.L.T. 13 (S.C.). 4. After hearing both sides and on perusal of the records, we find that Notification 67/95-C.E. granted exemption on the inputs from the whole of duty of excise, if it is used captive consumption. The proviso to the said notification provides that the benefit of the notification shall not apply to inputs used on exempted final products, other than those goods which are cleared as specified in Clauses (i) to (vi) of the said proviso. Clause (vi) of proviso to Notification No. 67/95-C.E. (supra) provides that th....