Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 150 - AT - Central Excise100% EOU - rate at which Central Excise Duty is required to be paid for clearance from 100% EOU to DTA - benefit of N/N. 23/2003 denied on the ground that the appellant has not satisfied condition specified in the Notification that the goods should be manufactured exclusively out of indigenous raw materials - Held that:- The circular dated 31/01/2002 proposed to deny the benefit but the subsequent circular dated 28/03/2002 advised to extend such benefit - The Apex Court in the case of Vanasathali Textile [2007 (10) TMI 303 - SUPREME COURT OF INDIA] in which the Apex Court examined the scope of Notification 08/1997 ibid. The term ‘Consumables’ as per the Apex Court refers only to material which is utilized as an input in the manufacturing process but is not identifiable in the final product, by reason of fact that it has got consumed therein. From the nature of the use of the imported item, it is evident that the item is in the nature of the consumable. The purport of the CBEC Circular is to allow the benefit of the Notification 08/1997 as long as the final products are manufactured by EOU exclusively out of indigenous raw materials notwithstanding the of use of consumables, even if imported. Benefit of notification cannot be denied - appeal allowed - decided in favor of appellant.
|