2017 (4) TMI 380

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....tral excise duty and parts of tractors were exempted from duty for manufacture within the factory of production but were chargeable for duty when cleared for home consumption. The appellant had separate manufacturing sector for HVTU for which they were availing sr.no. 296 of notification 23/04 for captive consumption within the factory of production. The appellant also cleared HVTU on payment of duty to their other unit situated at Kandivli and Radrapur. Thus the appellant were engaged in the clearance of exempted as well as dutiable product. The appellant availed credit on the entire inputs at the time of receipt thereof on the goods cleared outside the factory they paid excise duty 16% ad valorem and in case of captive consumption, that w....

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....ll as dutiable goods, therefore the only option is to pay 8%/ 10% of the price of the exempted goods. Therefore, the original authority has correctly confirmed the demand. The Commissioner (Appeals) has erred in allowing the appeal of the respondent. He placed reliance on the following judgments:- • CCE vs. Ballarpur Industries Ltd. 2007 (215) ELT 489 (SC) • CCE vs. Nicholas Piramal (I) Ltd. 2009 (244) ELT 321 3. On the other hand, Ms. Vibha Sachde, Manager, Excise appearing on behalf of the respondent submits that the contention of the revenue is applicable in case where the assessee avails credit and does not reverse the same on the input attributed to the exempted goods. In the present case admittedly the res....