Captive Consumed (Goods used within the factory of production)

Exemption to all capital goods and specified inputs if actively consumed within the factory of production. - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), read the sub section 3 of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), hereinafter referred to as the said special Importance Act, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts -

1.  capital goods as defined in the (CENVAT Credit Rules, 2002) manufactures in a factory and used within the factory of production;
2. goods specified in column (1) of the Table hereto annexed (hereinafter referred to as ‘inputs’) manufactured in a factory and used within the factory of production in or in relation to manufacture of final products specified in column (2) of the said Table;

from the whole of the duty of excise leviable thereon which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) or additional duty of excise leviable thereon, which is specified in the schedule to the said special importance Act :

Provided that nothing contained in this notification shall apply to inputs used in or in relation to the manufacture of final products which are exempts from the whole of the duty of excise or additional duty of excise leviable thereon or are chargeable to nil rate of duty, other than those cleared

1. to a unit in a Free Trade Zone
2. to a 100% Export Oriented Undertaking or
3. to a unit in an Electronic Hardware Technology Park or
4. to a unit in a Software Technology Parks),
5. under notification no. 108/95- Central Excise, dated 28^th August, 1995 or
6. by a manufacturer of dutiable and exempted final products, after discharging the obligation prescribed in rule 6 of the CENVAT Credit Rules, 2001

TABLE