2007 (7) TMI 130

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....thority below was whether Central Excise duty was leviable on the containers consumed captively for packing of the duty exempted goods manufactured by the Appellant. The allegation of the Department was that the appellant manufactured, cleared and captively consumed HDPE jar/metal containers for packing of their final product without payment of duty although the final product is exempt from such levy w.e.f. 1-3-2005 while the appellant pleaded that it was entitled to the benefit of exemption in terms of Notification No. 67/95 dated 16-3-1995 when read with Notification No. 10/96 dated 23-7-1996. 2. Ld. Sr. Counsel Dr. Samir Chakravorty appearing for the Appellant submitted that the exemption Notification No. 10/96 dated 23-7-96 read with....

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....hold that the containers were captively consumed and entitled to the respective benefit under law. 3. The ld. JDR supported order of adjudication and submitted that the appellant is not entitled to the benefit of the notification because the final product is exempt. 4.1 Heard both sides and perused the record. After full length of hearing by both sides and on appreciation of the principle laid down by the Hon'ble Supreme Court, we are inclined to waive pre-deposit and decided to dispose the appeal on its own merit. 4.2 The term "consumption" came for interpretation by the Hon'ble Supreme Court in the case of Union of India v. V.M. Salgaotwar & Bros. (P) Ltd. reported in 1998 (99) E.L.T. 3 (S.C.). The Hon'ble Court in Para-8 of the ....