2017 (3) TMI 600

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.... department alleging that they had manufactured and cleared caustic soda through pipeline to their Rayon Viscose Plant for the manufacture of rayon yarn and anhydrous sodium sulphate. Quantity used for manufacture of rayon yarn was cleared on payment of central excise duty whereas  that used in the manufacture of anhydrous sodium sulphate was cleared availing exemption under Notification No. 217/86-CE dated 2-4-86. However, part of this anhydrous sodium sulphate is further utilized in the manufacture of rayon yarn by availing exemption under Notification No. 40/85 dated 17-3-85. It was contended that quantity of caustic soda  that goes in the manufacture of anhydrous sodium sulphate which is further used in the manufacture of rayo....

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.... captive consumption for manufacture of anhydrous sodium sulphate which was subsequently used for manufacture of rayon yarn. The appellant claimed the exemption notification No. 217/86-CE dated 2-4-1986 in respect of caustic soda. Anhydrous sodium sulphate was cleared for manufacture of rayon yarn in terms of Notification no. 40/95-CE. Notification No. 217/86 reads as under: Specified goods used within the factory of production in the manufacture of finished goods In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts goods specified in column (2) of the Table hereto annexed (hereinafter referred to as 'inputs') manufactured in a factor....

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....r any headings of Chapters 28, 29, 30, 32, 33, 34, 35, 36, 37, 38, 39, 40, 48, 70, 72, 73, 74, 75, 76, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95 or 96 (other than those falling under Headings Nos. 36.03 or 37.05) of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986). Goods classifiable under any headings of Chapters 28, 29, 30, 32, 33, 34, 35, 36, 37, 38, 39, 40. 70, 72, 73, 74, 75, 76, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95 or 96 (other than those falling under heading Nos. 36.03 or 37.05) of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986). [Notification No. 217/86-C.E., dated 2-4-1986] From the plain reading of the above notification, ....