AMBUJA CEMENT LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) In all these appeals, the issue that arises for consideration is the same which relates to interpretation of Exemption Notification No. 67/95, as amended, and dutiability of the intermediary product 'Clinker' obtained at an intermediary stage in the production of 'Cement'. The Appellant contends that as per Rules 4 and 8 of the Central Excise Rules, no duty is payable in respect of the intermediate product 'Clinker' which is utilised within the factory in the manufacture of 'Cement'. Such 'Clinker' is not dutiable. In the alternative, it is submitted by the Appellant that even if 'Clinker' is held to be dutiable, it is exempted under Exemption Notification No. 67/95 -C.E., dated 16 -3 -1995. For the sake of convenience, we take note of the facts from Civil Appeal No. 2793 of 2006.

(2.) The Appellant/Assessee is the manufacturer of cement. For manufacturing of cement, clinker is the raw material/input. Clinker is also manufactured by the Appellant in its factory located in the 'Industrial Growth Centre' in Himachal Pradesh. It is cleared from the factory upon payment of duty as a final product because of the reason that there is no exemption available in respect of clinker which is cleared from the factory as a final product and is dutiable. As mentioned above, cement is also produced by the Appellant.

(3.) Clinker and Cement are dutiable products under Chapter 25 of the First Schedule to the Central Excise Tariff Act, 1985, which deals with Salt; Sulphur; Clay and Stone; Plastering Materials; Lime and Cement.