2016 (2) TMI 759

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....earth Muck Dump area inside appellant's factory they gave a contract to M/s.Ferro Scrap Nigam Ltd. (FSNL) for lancing at the Dump area. FSNL process the scrap which in turn is used by appellant in or in relation to manufacture of final product. For the use of FSNL the appellant is supplying oxygen free of cost through pipelines. A dispute arose regarding appellants liability to duty on such oxygen cleared to F S N L. The appellant's claimed exemption under notification No.67/95. Proceedings initiated concluded in the original order dated 30.11.2006. The original authority dropped the demand. On appeal by department, the Commissioner (Appeals) vide the impugned order dated 25.06.2007 confirmed the demand for normal period. Aggrieved by this....

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....nd hence exemption available in terms of notification No.67/95-CE, for captive consumption is rightly claimed by them. The said notification exempts, interalia, 'inputs' manufactured in a factory and used within the factory of production in or in relation to manufacture of final products. The said exemption in not available if the final product is exempted from whole of excise duty leviable thereon. The appellant claims that there is no clearance of oxygen outside their factory premises. However, it is an admitted fact that the recipient of oxygen is a corporate entity engaged in industrial activity having their own factory premises, though within the factory complex of appellants. The business arrangement and need is such that the impugned....

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.... ld. Counsel for appellant, we find that the facts and issues are different. In Orissa Sponge Iron Ltd. - 2014 (313) E.L.T. 432- the Tribunal was examining the availability of exemption under notification No.67/95-CE when two units of the same assessee are located inside the same factory. In Triveni Engineering and Industries Ltd. - 2001 (136) E.L.T. 617 (Tri.-Del.) the Tribunal examined the issue of use of capital goods for erection at site. In Dhampur Sugar Mills Ltd. -2001 (129).. E.L.T. 73 (Tri. Del.) the issue examined was location of three divisions / units in the same compound of single factory. In Biocon Ltd. - 2014 (309) E.L.T. 66 (Kar.) the Honble Karnataka High Court held that the assessee is entitled to cenvat credit on inputs ....