2001 (1) TMI 152

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.... Member (J)]. - The Commissioner has confirmed the demand of duty of Rs. 7,54,909.27 and has imposed a personal penalty of Rs. 25,000.00 on the appellants by denying them the benefit of exemption Notification No. 10/96-C.E., dated 23-7-1996. Vide the said notification, full exemption from Central Excise Duty has been granted to all goods manufactured in a factory and consumed within the same facto....

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....e short point required to be decided in the present appeal is as to whether the use of metal containers for packing of Vanaspati satisfies the condition of notification which is to the effect that the said goods are consumed within the factory of their production in the manufacture of goods. It has been strongly argued before us that under the Essential Commodities Act, 1955; Packaged Commodities ....

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....well amount to consumption of the article, albeit that article retaining its identity even after its use." 5.Similarly, in the case of Deputy Chief Controller of Imports and Exports v. K.T. Kosalram (S.C.) reported in 1999 (110) E.L.T. 366, the Hon'ble Supreme Court while considering clause (c) in an Import Licence which used the expression, "the goods will be utilised only for consumption as r....

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....up to 22-7-96, Vanaspati was liable to duty and consequently, the said tin containers manufactured by the appellants and captively used for packing Vanaspati within its factory in the manufacture of Vanaspati, were fully exempt from Central Excise Duty under Notification No. 67/95-C.E. 8.During the 1996 Budget, Vanaspati was granted full exemption from Central Excise Duty by Notification No. 16....