TMI Blog2007 (3) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... law. C/150/2006 - M/s. Imperial Granites (P) Ltd. v. The Commissioner of Customs and Central Excise, Tirupathi. 2. This Appeal No. C/150/2006 arises from Order-in-Appeal No. 03/2006, dated 24-1-2006 by which the Commissioner (A) has confirmed the Order-in-Original No. 6/2005, dated 29-4-2005 passed by the Joint Commissioner confirming demand towards differential duty on the allegation that the appellants having imported raw materials and also having procured indigenous machinery, spares and raw materials without payment of duty under various exemption Notification being a 100% EOU, have utilized the benefit of exemptions wrongly. 3. It is alleged that the appellants have used epoxy resin and agar which are raw materials and not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erials. They are consumables and as such, the issue is covered by the judgment of this bench rendered in the case of Forbes Gokak Ltd. v. CCE - 2005 (192) E.L.T. 1000 wherein imported wax used for grazing cotton yarn was held to be consumable. It was submitted that this ratio would apply to the present case, as the judgment refers to the Apex Court judgment rendered in the case of CCE v. Ballarpur (supra). Further reference is made to the judgment of this bench which has follows the Forbes Gokak Ltd. v. CCE rendered in the case of Maruti Cottex Ltd. v. CCE, Calcutta - 2006 (199) E.L.T. 263 wherein also imported polyvinyl alcohol (PVA 117) used in processing of sizing has been considered as consumables, as the same is washed off before yarn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ression in the matter. C/1093/2006 - The Commissioner of Customs Central Excise, Hyderabad v. Ravileela Granites. 4. In C/1093/2006, the Revenue is aggrieved with the Order-in-Appeal No. 26/2006 (H-IV)-C.E., dated 26-7-2006 by which the Commissioner (A) has on remand from the CESTAT set aside the Joint Commissioner's order demanding duty on the same allegation as in the above case. The Commissioner (A) in the impugned order has treated the item as consumables in terms of its definition appearing in Import Export Policy 1988-1991. He has also referred to ITC Policy Book 1992-1997 where the definition of consumables means "any item which participates in or is required for a manufacturing process, but does not form a part of the end-pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and excisable. A letter dated 25-3-2003 issued by the Asst. Development Commissioner, Visakhapatnam. Special Economic Zone issued to M/s. Vajra Granites Ltd. Hyderabad is also relied, wherein it has been held that the item is a consumable. E/702/2005 - M/s. Pokarna Limited v. The Commissioner of Customs and Central Excise, Hyderabad-III Commissioner, Hyderabad. 6. This appeal No. E/702/2005 arises from Order-in-Original No. 9/2005 Commr., dated 31-5-2005 passed by the Commissioner of Customs and Central Excise, Hyderabad-III Commissionerate. The facts are identical to the above two cases. The appellants in this case explained with technical details that the epoxy resin is used in the manufacturing process of polished granites slabs, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Limited v. The Commissioner of Customs (Appeals), Bangalore. 9. In C/522/2006 arises from Order-in-Appeal No. 112/2006 Cus., dated 18-8-2006 by which the Commissioner (A) has upheld the Order-in-Original No. 11/2006, dated 3-2-2006 by which demands have been confirmed by rejecting the claim of benefit of Notification No. 8/97 for having used these two materials while polishing the granites. The appellants have taken the same stand as taken by the other appellants in the above cases. 10. The learned Counsel has also relied on the same sets judgments and clarificatory letters issued by the Development Commissioner and the Board's Circular. 11. The learned JDR arguing for the revenue has relied on the findings given by the respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod was also set aside. The same view was expressed by this Bench by following this ratio in the case of Maruti Cottex Ltd. v. CCE, Hyderabad (supra) where imported polyvinyl alcohol (PVA 117) was used in the process of sizing as a consumable, which is washed off before yarn is used for weaving. 12.1 In the case of CCE v. Ravileela Granites, the Commissioner (A) has analysed in great detail as to what is a raw material in the light of the Apex Court judgment rendered in the case of CCE v. Ballarpur Industries Ltd. (supra). He has referred to the Board's Clarificatory circulars as well as to the letters issued by the Development Commissioners clarifying that both these items are consumables. He has clearly noted after stating the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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