HINDUSTAN COPPER LTD. Vs. C.C.E.

JUDGEMENT

(1.) THE issue raised in both these appeals is the same. The appellant manufactures several copper products in its factory from unrefined copper. Two such items are 'copper cooling elements' and 'copper launders'. These are (captively) used as capital goods by the appellant in its factory for the manufacture of other goods. Accordingly, it claimed exemption under Notification No. 67/95 dated 16.3.95 for these two items. That Notification, inter -alia, exempted "capital goods as defined in Rule 57Q of the Central Excise Rules, 1944 manufactured in a factory and used within the factory of production".

(2.) THESE items are produced from unrefined copper and rejected cathodes manufactured in the appellant's own factory. No duty was paid by the appellant on these items also on the ground that Notification No. 67/95 exempted the 'inputs' manufactured in a factory and used within the factory of production in or in relation to the manufacture of final products.

(3.) UNDER the impugned order, duty demand has been made on the unrefined and rejected cathodes on the ground that they were not eligible for exemption, since the final products (copper cooling elements and copper launders) had not discharged duty liability. The demand is made relying on the proviso to the notification.