TaxTMI 
TaxTMI 
2017 (11) TMI 1248
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....hem and captively used in the manufacture of final products [knitted garments]. The appellants were availing exemption as a small-scale industry in terms of Notification No.8/2003-CE, dated 01.03.2003 effective from 01.04.2003. The said notification covers knitted garments manufactured and cleared by the appellants. However, the notification does not cover processed fabrics manufactured and captively used by the appellants. The appellants claimed exemption for this processed fabrics captively consumed in terms of Notification No.67/1995-CE, dated 16.03.1995. 2. Revenue held a view that the appellants are not eligible for exemption under Notification No. 67/1995-CE as the final product, namely, knitted garments are not discharging any....
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....nufacture of specified goods cleared for home consumption, for the specified aggregate value of first clearance. That being so, the appellants cannot avail credit under Cenvat Credit Rules, 2002. The question of fulfilling obligation under Rule 6 of the said Rules does not arise. He, thus, distinguished the ratio of the Hon'ble Supreme Court for application to the present facts of the case. He further relied on the decision of the Tribunal in the case of M/s. Kunnath Textiles Vs Commissioner of Customs & Central Excise, Cochin reported in 2008 (229) E.L T.628 (Tri. -Bang.). 7. We have heard both sides and perused the appeal records. We note that the duty liability of the appellants for intermediate goods [processed fabrics) used in the....
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....t Rules. The respondent have not even disputed the same. 14. The case set up by the appellant therefore, was that since the exempted goods ('Cement') is cleared by the appellant who is a manufacturer of (a) 'dutiable final products' ('Clinker'); and (b) 'exempted final products' ('Cement') after discharging the "obligation" prescribed in Rule 6 of the Cenvat Credit Rules, 2001, clause (vi) of the notification applies. In such a case, exemption is available in respect of 'Clinker' which is captively consumed in the manufacture of 'Cement' as per the opening part of the Notification. The Customs, Excise and Service Tax Appellate Tribunal (for short 'CESTAT') has disallowed the exemption in respect of 'Clinker' as claimed above. 15.&ems....
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....horised Representative contested the application of the above decision and contended that the facts will not apply to the present case. We have carefully considered the said claim. We note that the intermediate products involving both the cases were manufactured and captively consumed by the manufacturer. The final products are exempt on the condition either due to location of the Unit or the turnover of the Unit. In both the cases, the intermediate product is not eligible for exemption as applicable to the final product. Both the parties claimed exemption as applicable to the final product in terms of Notification No. 67/1995-CE. As such, we find that facts are pari materia in both the disputes. Hon'ble Supreme Court on detailed examin....