2018 (6) TMI 377

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... after following the principles of law, held that the benefit of notification No. 67/95- CE is not available to captively consumed cement used for construction purposes, and the structures resulting out of construction are not goods. It is also his finding that cement can not be treated as capital goods which falls under chapter 25 of the tariff act; confirmed the demands raised alongwith interest and also imposed equivalent penalty. Aggrieved by such an order, an appeal was preferred before the first appellate authority, who, after following due process of law held that the Order-in-Original is correct and dismissed the appeal. 4. Ld. Counsel appearing on behalf of the appellant submits that the lower authorities have not considered the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion of capital goods. Reliance is placed by Ld. Commissioner (A.R) in the case of Larsen & Toubro LTd. vs. CCE, Hyderabad [2005(190) E.L.T 132 (Tri.-Bang.)] and ECC Construction Group [2015-TIOL-236-SC-CX] for the proposition that exemption notification should be read and strictly interpreted and in case of doubt, benefit needs to be extended to Revenue. 6. On careful consideration of the submissions made, we find that following are undisputed facts. (a) Appellant is manufacturer of cement and discharges appropriate Central Excise Duty on home clearances. (b) Undertook expansion of the production capacity of the cement plant and for such expansion, erection of various plants, consumed 210 M.Ts of cement captively, witho....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ively consumed cement is for further manufacturing of cement and the said final product cement is cleared on payment of duty. Similar issue came up before Hon'ble High Court of Andhra Pradesh in the case of Sai Sahmita Storage Pvt. Ltd., [2011(270) E.L.T. 33 (A.P.)]. In that case, Hon'ble High Court was considering the eligibility to avail CENVAT credit of duty paid on Cement and TMT Steel Bar for construction of warehouses and while dismissing the appeal of Revenue held that credit needs to be allowed as warehouses are used for rendering of taxable output services. The ratio can be extended to the case in hand also, as it is not in dispute that captively consumed cement is used for erection of structures used for manufacturing of cement. H....