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2005 (7) TMI 234 - AT - Central ExciseDemand - Limitation - Suppression of facts - EOU - Whether the Wax used for grazing the yarn is to be considered as a 'Raw material' or as 'Consumable? - HELD THAT:- In view of the enormous evidence on record, the appellants contention that wax is Consumable is required to be accepted. In terms of the Board's Circular No. 389/22/98-CX and Circular No. 631/22/02-CX clarifying that Consumables are not raw materials and its use will not disentitle the benefit of the Notification in question, the appellants prayer for setting aside the impugned order is required to be upheld. Even on time-bar, the appellants have made out a strong case in their favour. The appellants were using imported wax and its use was within the knowledge of the department as is clearly borne out from the records. The Superintendent, by his letter dated 16-2-1999 had asked the appellants as to whether they were using any imported material. The appellants had clarified about the use and the department was aware of the use of this Wax in terms of the declarations and various correspondences they had with the department. The appellants' industry was also under control of the department. In the circumstance, it cannot be said that there are suppressions in the matter and the department was unaware of the use of Wax. Therefore, the demands are required to be held as time- barred. The appellants succeed both on merits as well as on time-bar. The appeal is allowed with consequential relief if any.
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