2023 (9) TMI 803

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....ed products like Angles, Channels, Joist, TMT Bar etc.. During the period 2006-07 and 2007-08, the appellant made extension of their factory by installing of a new induction furnace unit for manufacture of MS ingots as well as manufacture of wire rod during the period 2010- 11. For that, the appellant constructed a new shed for manufacturing and storing. For the said activity the appellant used huge quantity of their manufactured rolled products like angles, channels, TMT bars, joist etc.. They used other manufacturing products for captive consumption and did not pay central excise duty on the ground that they were entitled to have the benefit of exemption notification No.67/95-CE dated 16.03.1995. During the course of investigation, the ap....

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....the benefit of Notification No.67/95-CE(NT) and a show cause notice dated 16.06.2011 was issued to the appellant to demand duty on the above-said steel items used captively for manufacturing of their so called capital goods which were embedded to earth and along with interest and equivalent amount of penalty was also imposed. Aggrieved from the said order, the appellant is before us. 3. The Ld.Counsel for the appellant contested the issue on merits as well as limitation. With regard to eligibility of cenvat credit on the items used for manufacture of capital goods, it is his contention that the utilization of the questioned goods for manufacture of capital goods was duly certified by the qualified Chartered Engineer and the said certificat....

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.... show cause notice has been issued by invoking extended period of limitation, therefore, part of the demand is barred by limitation. 4. On the other hand, the Ld.AR for the department reiterated the findings of the impugned order. 5. Heard the parties, considered the submissions. 6. The sole issue in this case is that items manufactured by the appellant namely Angles, Channels, Joist, TMT Bars etc. used captively for fabrication of capital goods/support structures which were embedded to earth, the appellant liable to pay duty on the said product or not. 7. We find that it is not disputed by the revenue that these items have been used by the appellant for fabrication of capital goods which has been captively consumed for fabrication of c....

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.... decided on 10-7- 2017 [2017 (355) E.L.T. 373 (Mad.)] to conclude that the said amendment cannot be treated as clarificatory. M/s. Thiruarooran Sugars also considered the issue as to the effect and fundamental value of the evidentiary statement made by the Finance Minister dealing with an amendment in the budget speech. 7. Section 37 of the Central Excise Act, 1944; for short, 'the Act', is a rule making power. Section 37(2)(xvia) provide for the credit of duty paid or deemed to have been paid on the goods used in, or in relation to, the manufacture of excisable goods. Section 37(2A) of the Act - The power to make rules conferred by clause (xvi) of sub-section (2) shall include the power to give retrospective effect to rebate of duties o....