TaxTMI 
TaxTMI 
TaxTMI 
2015 (9) TMI 40
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....e taken up for disposal. 2.1 Brief facts of the case are that appellants are manufacturer of chewing tobacco and availed of exemption from excise duty under Notification No. 8/2004-CE dated 21/01/2004. The exemption under this notification was subject to certain conditions, the main condition being that the beneficiary manufacturer was required to utilize an amount equal to duty payable but for exemption in the above notification only for investment in plant and machinery in their manufacturing unit located in the North East or in infrastructure or civil works or social project in North East. 2.2 For the manufacture of finished chewing tobacco, the appellants manufactured the inter mediate product called compound (like additive mixt....
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....r Sl. No. (B) of this Notification amount equal to the sum of excise duty, payable, but for the exemption in this notification, shall be utilized by the manufacturer only for investment in plant and machinery or infrastructure or civil works or social projects in Norther East. 3.2 It is his submission that for calculating the amount equal to the duty payable, but for exemption in Notification No. 8/04-CE one has to calculate the amount of duty payable as if Notification No. 8/04-CE does not exist. Now when finished tobacco is dutiable, no duty is payable on compound by virtue of the fact that compound, having been used for captive consumption in the manufacture of dutiable finished chewing tobacco would attract exemption under Notification....
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.... the issue of Notification No. 8/2004 gets defeated. He relied upon the judgment of Hon'ble Supreme Court in case of Commr. of Central Excise, Jaipur Vs. Pitamber Coated Paper Ltd. reported in 2015 (319) E.L.T. 357 (S.C.). He submits that in this case the assesse was engaged in the manufacture of coated and uncoated paper. The department demanded the duty on the uncoated paper and paper Boards manufactured by the assessse and consumed captively for the manufacture of coated paper and paper board for the reason that assesse had cleared final products i.e. coated paper at nil rate of duty under Notification No. 3/01-CE dated 1/3/2001.The Hon'ble Court observed that if the interpretation sought to be given by the Revenue is accepted, it will d....
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....on that equal amount of sum of excise duty was utilized for the purposes specified in the said notification but in the present case, the appellants neither declared about manufacture of compound nor maintained any records and submitted any return, nor claimed the benefit of said notification nor fulfilled the conditions of investment as provided in the Notification No. 8/2004 and therefore, at this stage, their plea that the said compound deemed to have been covered by the conditional Notification No. 8/2004-CE is unacceptable. 4.4 On the issue of time bar, he submitted that the appellants have executed a bond to comply with various conditions of the notification. Since the compounds were dutiable, as held by the Honble Supreme Court in i....
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.... said compound classifiable under Chapter Heading 2404.41 of CETA, 1985 and under 24039930 after 28/02/2005, is specified in the Notification No.8/2004 and there is no dispute about this. 7.3 The issue involved is whether the appellants are eligible for exemption on compound under Notification No.52/2002, as their finished products i.e. chewing tobacco are wholly exempt under Notification No. 8/2004. This notification exempts all goods falling under tariff item 21069020 and chapter 24 of the first schedule to the CETA, 1985 manufactured in a factory and used within the said factory for manufacture of final products. The benefit of this notification is, however, not applicable where the final products are exempt from the whole of the duty o....