TaxTMI 
TaxTMI 
2015 (11) TMI 1413
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...., Mr. Aditya Bhattacharya, Adv., Mr. Hemant Bajaj, Adv., Mr. Anandh K., Adv., Mr. Rupesh Kumar, Adv., Mr. Jitin Singhal, Adv. For the Respondent : Mr. Arijit Prasad, Adv., Mr. Vikas Singh Jangra, Adv., Mr. H. K. Naik, Adv., Mr. B. Krishna Prasad, Adv. ORDER In all these appeals, the issue that arises for consideration is the same which relates to interpretation of Exemption Notification No. 67/95, as amended, and dutiability of the intermediary product 'Clinker' obtained at an intermediary stage in the production of 'Cement'. The appellant contends that as per Rule 4 and 8 of the Central Excise Rules, no duty is payable in respect of the intermediate product 'Clinker' which is utilised within the factory in ....
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....operties 2502.29 - Other 2502.30 - Aluminous cement ('Cement fondu') 2502.40 - Sagol; ashmoh 2502.50 - High alumina refractory cement 2502.90 - Other" However, cement is exempt from payment of duty under Exemption Notification No. 50/03-CE dated 10.06.2003, since it is manufactured and cleared from the factory of the appellant which is located in the 'Industrial Growth Centre' in Himachal Pradesh. Thus, on this final product, viz., cement, no duty is payable as it is exempted from payment of duty. To this extent, there is no dispute. In this manner, the appellant is a manufacturer, who manufactures in the aforesaid factory a 'dutiable final product' (Clinker) as wel....
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....othing contained in this notification shall apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of the duty of excise or additional duty of excise leviable thereon, or are chargeable to nil rate of duty, other than those goods which are cleared, - (i) to a unit in a Free Trade Zone, or (ii) to a hundred per cent Export Oriented Undertaking, or (iii) to a unit in an Electronic Hardware Technology Part, or (iv) to a unit in a Software Technology Part, or (v) under notification No. 108/95-Central Excise, dated the 28th August 1995, or (vi) by a manufacturer of dutiable and exempted final products, after discharging the obligation prescribed in rule 6 of the CENVAT Credit....
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....the Table as column (1) of the Table mentions of goods falling under the First Schedule to the Central Excise Tariff Act, 1985, with the exception of certain goods (inputs) specifically excluded and clinker is not one of those inputs. However, proviso appended to this Notification excludes those inputs where these are used in or in relation to the manufacture of the final product and that final product is also exempt. In the present case, we find that the Clinker is used as input for production of Cement and Cement is exempted from the excise duty. Therefore, by virtue of this proviso insofar as Clinker is concerned, Exemption Notification would not apply. However, the matter does not end here inasmuch as the proviso itself is not applic....
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....er' as claimed above. As per the CESTAT, Rule 6 applies only if some final product is partly exempt and partly dutiable. However, we do not find any such restriction in Rule 6 which contemplates the situation where a manufacturer produces (a) final products which are chargeable to duty, as well as (b) exempted goods. The Rule does not provide that the same final product should be partly dutiable and partly exempted. On the contrary, this Rule relates to taking of CENVAT Credit in respect of 'inputs'. This Rule is not applicable as such in its totality since taking of CENVAT credit is not in issue in these cases. On the other hand, relevance of this Rule is only to the extent of 'obligation' contained in the said Ru....