2017 (5) TMI 751

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....o August 2009 has manufactured 44.440 MTs of structural items namely, MS angles, MS channels, joist which were used captive consumption in their factory for production of final product but without payment of excise duty claiming exemption under Notification No. 67/95-CE dated 16.3.95. The Department was of the view that the appellant was not eligible for benefit under the Notification because MS channels, MS angles, joist etc. were not covered under the definition of 'capital goods' as defined under Cenvat Credit Rules, 2004. So, the Department had issued show cause notice raising duty demand of Rs. 1,14,412/- with interest in respect of aforesaid goods used for captive consumption. Notice also proposed to impose penalty. The appellant cont....

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.... exemption Notification No. 67/95-CE has been rightly denied to the appellant for the reason that the subject goods M.S. angles, Channels, joist etc. were not capital goods as defined under Rule 2(a) of Cenvat Credit Rules, 2004 and those goods have not been used as inputs for manufacture in or in relation to the manufacture of final product of the appellant. Ld. DR has relied upon the judgement of the Supreme Court in the matter of Saraswati Sugar Mills Ltd. Vs. CCE, Delhi-III - 2011 (270) ELT 465 (SC). 5. We have considered the rival contentions and perused the record. The point of controversy in this appeal is whether or not the appellant is entitled to exemption from excise duty in respect of MS angles, MS channels, joist etc. manufact....

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.... of final products All goods falling under the First schedule to the Central Excise Tariff Act, 1958 (5 of 1986), other Light diesel High speed diesel oil and motor spirit, commonly known as petrol All goods falling under the First Schedule to the Central Excise Tariff Act 1985 (5 of 1986) other than matches On bare reading of the above, it is evident that all capital goods and specified inputs, detailed in the Table referred to above, manufactured and captively used within the factory of production are eligible to exemption from excise duty. In the instant case, the benefit of notification has been denied to the appellant on the ground that MS angles, MS channels, joist etc. do not fall within definition of capital goods or components o....