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2015 (10) TMI 441

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..... e product and does not form part of the product. This has been accepted even by the Commissioner and finding to this effect is given by stating that it is not directly consumed in the process of manufacturing and normal life of the catalyst is 36 months, after which this catalyst has to be replaced by a new one. - Catalyst which retains its character, remains outside the end product, remains uninfluenced and unaltered cannot be treated as raw material. - No violation with the approach of the Tribunal in granting the benefit of the Notifications to the assessee herein - Decided against Revenue. - Civil Appeal No(s). 2588/2006 with C.A. No. 9679-9681/2010 - - - Dated:- 1-9-2015 - Mr. A.K. Sikri and Mr. Rohinton Fali Nariman, JJ. For .....

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..... entitled to the concessional rate of duty as prescribed in these Notifications. Thus, in order to avail the benefit of these Notifications it was required to establish by the assessee that it was producing the aforesaid goods viz. Phthalic Anhydride, Waste Water, Waste Steam and Low Boiling Components from the raw material produced or manufactured in India. On this aspect dispute has arisen inasmuch as while producing the aforesaid products the assessee was also using Vanadium Pentoxide which was imported by the assessee. As per the Revenue, Vanadium Pentoxide which is the material used for the manufacture of the products in question is the raw material and since the aforesaid components of raw material are imported, the assessee would not .....

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..... t in CCE VS. Ballarpur Industries Ltd.[1989(43) ELT 804 (SC)=1989(4) SCC 566] clarified that there may be various ingredients used in Chemical Technology of manufacture of any end product. Such kinds of ingredients stipulated therein read as under: (i) those which may retain their dominant individual identity and character through out the process and also in the end product; (ii) those which, as a result of interaction with other chemicals or ingredients, might themselves undergo chemical or qualitative changes and in such altered form find themselves in the end product; (iii) those which, like catalyst agents, while influencing and accelerating the chemical reactions, however, may themselves remain uninfluenced and unalter .....

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..... our ingredients are mentioned which are used in the chemical technology of manufacturer of any end product. However, the said judgment nowhere decides that all four ingredients are to be treated as raw material. In para 14 of the said judgment, while listing these four ingredients, this Court immediately thereafter clarified that in that case the Court was concerned only with the last ingredient mentioned therein viz. that those which might be burnt up or consumed in the chemical reactions. Otherwise, in para 19 the Court clarified that each case has to rest upon its own facts and in many cases it might be difficult to draw a line of demarcation. We may also like to record that this very aspect, viz. the Court was not concerned in that c .....

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