RAJASHREE CEMENT Vs. COMMISSIONER OF CENTRAL EXCISE, BELGAUM

JUDGEMENT

(1.) THIS appeal arises out of and is directed against the Order -in -Appeal No. 422/99 -C.E., dated 15 -4 -99 passed by the Commissioner of Customs and Central Excise (Appeals), Bangalore.

(2.) THE appellants are engaged in the manufacture of cement and clinker falling under Chapter heading 25. The appellants during the period from October, 1994 to March, 1995 cleared 4,891 MT, of cement to the Earthquake Relief and Rehabilitation work by availing the exemption under Notification No. 128/94 as a special relief for Earthquake victim. The Show Cause Notice was issued asking why the duty on clinker used in the manufacture of cement which was cleared under exemption should not be recovered as the clinker was utilised by availing the exemption under Notification 217/86. The Deputy Commissioner who adjudicated the proceedings confirmed the demand of Rs. 8,79,567/ -. In appeal, the party has become unsuccessful.

(3.) IT was the contention of the party that the demand was beyond the limitation of 6 months and further the exemption under Notification No. 128/94 allowed was also applicable to the clinker used in the same factory for the manufacture of cement. According to the Department, notification allowed the benefit to the final product and not to the intermediate product and the same cannot be exempted in terms of the aforesaid notification.