TaxTMI 
TaxTMI 
2024 (10) TMI 3
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....issue has been decided by this tribunal by following decision in the appellant's own case. Shree Digvijay Cement Co Ltd- 2018 (11) TMI-300-CESTAT-Ahmedabad Thermo Cables Ltd - 2013 (292) ELT 412 Kei Industries Ltd - 2-17 (357) ELT 1230 Bharat Aluminium Co Ltd - 2017 (345) ELT 685 Ultratech Cements Ltd - 2016 (343) ELT 164 Therefore the appeals deserve to be allowed. 3. Shri A K Samota learned superintendent AR appearing on behalf of the revenue reiterates the findings of the impugned order. 4. On careful consideration of the submissions made by both the sides and perusal of records, we find that this tribunal in the aforesaid two decisions considered the very same issue and held that the appellant are entitled for the exemption Notification No. 67/95-CE dated 16.3.1995 for captive use of clinker in the manufacture of cement which is cleared against the International competitive bidding under Notification No. 6/2006-CE dated 01.03.2006. One of the order reported as Shri Digvijay Cement Company Vs CCE and ST Rajkot 2023 (1) TMI (187) CESTAT-Ahmedabad is reproduced below : "4. We have carefully considered the submissions m....
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.... obligation prescribed in rule 6 of the CENVAT Credit Rules 2001. Table Description of inputs Description of final products (1) (2) All goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other Than light diesel oil, 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) From the plain reading of the above notification, it is observed that as per the above Notification. exemption is available in respect of goods used captively in the factory, within the factory of production in relation to manufacturing of final product. The Proviso to above notification provides that nothing contain in this Notification shall apply to inputs used in or relation to the manufacture of final product which are exempted from the whole duty of excise or chargeable to nil rate of duty. however the exception to this Proviso is provided in respect of supplies meant as mentioned in Clause I to V and also under Clause (VI) when the obligation prescribed in Rule 6 of Cenvat Credit Rule, 2001 is discharged. The Exempt....
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....2002 or Notification No. 6/2006-Central Excise dated the 1st March, 2006, as the case may be. From the above provision, it is clear that the appellant did not have any liability under sub-rule (2) to maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and inputs meant for use in the manufacture of exempted goods, nor did the assessee have alternative liability under sub- rule (3) to pay an amount equal to 10% of the value of the exempted goods This is because their final products were cleared against international competitive bidding in terms of Notification No.6/2006 CE ibid. 5. Against the above backdrop, one has to examine the scope of Notification No. 67/95 CE dt. 16/03/1995 (as amended) in so far as the present case is concerned. The opening paragraph of this Notification exempts from payment of CE duty any inputs manufactured in a factory and used within the same factory in or in relation to the manufacture of final products. Input must be one of those specified in the first column and the final product must be one of those specified in the second column of the table annexed ....
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.... any liability under sub-rules (1) to (4) of Rule 6 inasmuch as these sub-rules were not applicable, by virtue of sub-rule (6), to the assessee who were clearing their exempted final products against international competitive bidding in terms of Notification No. 6/2006-CE ibid. In other words, a conjoint reading of sub-rule (6) of Rule 6 of the CENVAT Credit Rules 2004 and clause (vi) under the proviso to Notification No. 67/95-CE ibid would show that the assessees claim for exemption from payment of duty on copper wire under the Notification was not hit by the opening portion of the proviso to the Notification. 7. 7. In the result, the assessee was not liable to pay CE duty on copper wire manufactured and captively used in the manufacture of insulated (power) cables in the factory during the material period. The impugned demands and the connected penalties are, therefore, liable to be set aside. It is ordered accordingly. 8. Both the appeals are allowed." The same issue has also been considered by Tribunal in the case of Kei Industries Ltd (Supra) wherein the Coordinate Bench of this Tribunal following the Thermo Cables Ltd judgment passed following orde....
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....ceipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and inputs meant for use in the manufacture of exempted goods, nor did the assessee have alternative liability under sub-rule (3) to pay an amount equal to 10% of the value of the exempted goods. This is because their final products were cleared against international competitive bidding in terms of Notification No. 6/2006-C.E ibid. 5. Against the above backdrop, one has to examine the scope of Notification No 67/95-CE, dated 16-3-1995 (as amended) in so far as the present case is concerned. The opening paragraph of this Notification exempts from payment of CE duty any inputs manufactured in a factory and used within the same factory in or in relation to the manufacture of final products. Input must be one of those specified in the first column and the final product must be one of those specified in the second column of the table annexed to the Notification. Admittedly, copper wire is one of the inputs and the power cables manufactured and cleared by the assessee are final products covered by the Notification. However, the Department would like to deny the benefit of this ....