ELSON MACHINES (P) LTD. versus COLLECTOR OF CENTRAL EXCISE

ELSON MACHINES (P) LTD. versus COLLECTOR OF CENTRAL EXCISE

Captive consumption does not exclude clearance from calculation where inputs and finished goods fall under different Tariff Items; appellant disentitled to exemption as aggregate value exceeded specified limit due to inclusion of captive consumption.

Parties
Appellant: Elson Machines (P) Ltd.; Respondent: Collector of Central Excise
Jurisdiction
India
Judgment Date
15 November 1988
Procedural Posture
Civil Appeal / Appeal From Customs, Excise and Gold (control) Appellate Tribunal
Outcome
appeal dismissed
Legal Topics
Exemption, Notification Interpretation, Clearance for Captive Consumption, Tariff Classification, Small Scale Manufacturer Concession
Central Excise Law Exemption Notification Interpretation Clearance for Captive Consumption Tariff Classification Small Scale Manufacturer Concession

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 4 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Elson Machines (P) Ltd.

Appellant

Collector of Central Excise

Respondent

Procedural Posture

Civil Appeal / Appeal From Customs, Excise and Gold (control) Appellate Tribunal

Legal Issues

  1. 1 Whether captive consumption of specified goods within the factory for manufacture of specified goods falling under a different item can be excluded while determining clearance value under Notification No. 80/80-C.E. dated 19-6-1980
  2. 2 Whether rotors and stators used in monoblock pumps fall under the same Tariff Item for the purpose of exemption
  3. 3 Whether captive consumption amounts to clearance under Central Excise law

Ratio Decidendi

Captive consumption does not exclude clearance from calculation where inputs and finished goods fall under different Tariff Items; appellant disentitled to exemption as aggregate value exceeded specified limit due to inclusion of captive consumption.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed with costs