Indirect taxes

Notification no. 67/1995 CE exempts capital goods manufactured and consumed within a factory. However in case of Usha Rectifier Corpn it was held that testing equipment is dutiable. Also there are other cases relating to this too. What am I missing? Why does they contradict each other?
Replies (2)

In Usha Rectifier case Supreme Court held as          "Demand - Deemed removal - Testing equipment manufactured for captive use - Contention that goods not taken out from premises, hence no duty leviable - Explanation to Rules 9 and 49 of erstwhile Central Excise Rules, 1944 provide that excisable goods manufactured and consumed or utilised as such deemed to have been removed - Duty payable - Sections 3 and 11A of Central Excise Act, 1944"

67/95 was not existing at that time

Raksh*t

09810525780

advrcverma @ gmail.com

In Usha Rectifier case Supreme Court held as          "Demand - Deemed removal - Testing equipment manufactured for captive use - Contention that goods not taken out from premises, hence no duty leviable - Explanation to Rules 9 and 49 of erstwhile Central Excise Rules, 1944 provide that excisable goods manufactured and consumed or utilised as such deemed to have been removed - Duty payable - Sections 3 and 11A of Central Excise Act, 1944"

67/95 was not existing at that time

Raksh*t

09810525780

advrcverma @ gmail.com

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