2005 (5) TMI 204

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....ovided under Notification No. 67/95-C.E., dated 16-3-95 for manufacture of certain capital goods for use in their factory. They had also availed the benefit of Notification No. 67/95-C.E. on these capital goods which were used within the factory. The Revenue took a stand that in terms of proviso clause of Notification No. 67/95-C.E., dated 16-3-95 exemption under the notification would not be available to such captive consumption because the final products made out of such captively consumed intermediate goods were not cleared on payment of duty but installed and used as capital goods within the factory. In other words, the goods manufactured out of captively consumed intermediate goods were further consumed captively within the factory rat....

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....held that the benefit of Notification No. 67/95-C.E. is available to coal tar pitch used in the manufacture of 'dolomite bricks' which is further used in relation to manufacture of final products. In the case of Bharat Forge Ltd. v. CCE, Pune-III [2004 (165) E.L.T. 339 (Tri.-Mumbai), it has been held that even if the intermediate product is exempt from payment of duty, as long as the final products in which the intermediate products are captively consumed carry duty and cleared on payment of duty then Cenvat credit is admissible on the inputs, machinery, goods used in the manufacture of exempted products. This decision was rendered while interpreting Notification No. 67/95. The Tribunal relied on Board's Circular dated 26-9-2002. The Suprem....

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....eligibility to duty exemption on the grounds of use of captively manufactured goods in the manufacture of fully exempt final products, applies only to "inputs" and not to "capital goods". 4. The learned SDR reiterated the grounds of the appeal. 5. We have gone through the rival contentions. The Notification No. 67/95-C.E., dated 16-3-95 exempts capital goods manufactured in a factory and used within the factory of production. The same notification exempts inputs manufactured in a factory and used within the factory of production in or in relation to manufacture of final product from the excise duty. There is a proviso to this notification which reads as follows :- "Provided that nothing contained in this notification shall apply to....