TMI Blog1998 (12) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... s free of duty in terms of Notification No. 116/88 and the succeeding Notification No. 159/90 with effect from 30-3-1990. The Custom House issued notice proposing to deny exemption to these goods. The ground on which the denial with regard to Dowtherm based was that it was heat transfer medium which is superheated and distributed to vessels and pipe lines containing polymer and oligemer and therefore, never comes into contact with the polymers or any process materials and is not consumed the material but used repeatedly and, therefore, it is not used in the manufacture of the resultant product. It was alleged with regard to TEG that it is only used to clean the parts of the manufacturing machinery such as spinnerettes, spin packs, gear pump ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntative says that the Court has not drawn a distinction, except as regards tense between materials required to be imposed for the purpose of manufacture of products and replenishment of materials used in the manufacture of the resultant product . The expression required to be imported for the purpose of manufacture of products occurring in the first notification has necessarily to be differently worded from the expression replenishment of materials used in the manufacture of the resultant products because each of these relates to materials used in different circumstances. The first relates to goods which will themselves be used by the importer or supporting manufacturer in order to achieve the production of the goods to be imported. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts. 4. We are not able to accept the contention that the Court has not drawn a distinction between the two phrases which were occurring in the first paragraph of the notification. The Court has taken note of the fact that two different expressions had been used i.e. materials required to be imported for the purpose of manufacture of products and replenishment of materials used in the manufacture of the resultant products and in paragraph 11 it indicates that two expressions have not been used in the same sense. It said the expression materials required to be imported for the purpose of manufacture of products cannot be construed as referring only to materials which are used in the manufacture of products . The said exemption mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the final products. 8. In view of the Supreme Court s Judgment, we have to see whether the goods are used for the purpose of manufacture of the resultant products. The certificate of Silk Artsilk Mills Research Association (SASMIRA) dated 16-6-1994 would be relevant, is reproduced below : TEG - In the polymer spinning process because of the characteristics of the polymer and the process involved of melting, there is a tendency for the system to get clogged. Even otherwise to be able to maintain the quality of the end product it is necessary to remove unextruded polymer residue and/or carbonised polymer from the system. It is all the more important to have periodic cleaning of the spinpack and the spinnerates. This is best achieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quality of the end product by removing polymer residue and carbonised polymer from the spinnerete and other machines. Without these products, the finished products cannot be manufactured and hence it requires for the purpose of manufacture of the finished products. 10. The Supreme Court s judgment in CCE v. Eastend Paper Industries where it was considered whether the paper used in a paper mills was utilised in the manufacture of the final products as component parts of the finished goods, in which case it gets the benefit of Notification No. 18A/83-C.E. The discussion was limited to whether something as raw materials or components is within the meaning of Notification. The judgment of the Supreme Court in Deputy Commissioner of Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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