TMI Blog2008 (7) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ise and Service Tax Appellate Tribunal, South Zonal Bench, Bangalore (in short the 'CESTAT'). Before the CESTAT the issue related to the eligibility of the appellant for the benefit of exemption under Notification No.8/97-CE dated 1.3.1997 for Hydrogen Peroxide manufactured and cleared by the appellant to the Domestic Tariff Area ( in short the 'DTA'). The Notification in question exempts finished products manufactured in a 100% Export Oriented Unit (in short the 'EOU') wholly from the raw materials produced or manufactured in India and allowed to be sold in India from so much of the duty of excise leviable thereon under Section 3 of the Central Excise Act, 1944 (in short the 'Act') as is in excess of amount equal to the duty of excise le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the appellant the materials in question are not raw materials but consumable as per definition in para 3.13 of the EXIM Policy. According to the definition of 'consumable' it means any item which participates in or is required for manufacturing process but does not form part of the end-product. Items which are substantially or totally consumed during manufacturing process will be deemed to be consumable. According to para 3.41 of the policy, raw material means basic materials which are needed for the manufacture of goods but which are still in a raw nature, unrefined or un-manufactured stage. Reliance was placed on the Board's Circular No. 389/22/98-CX, dated 5.5.1998 wherein it has been clarified that the benefit of the Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cesses culminating in the emergence of the desired end product, that having regard to its importance in and indispensability for the process, it could be said that its very consumption on burning up is its quality and value as raw material. In such a case, the relevant test is not its absence in the end product, but the dependence of the end product for its essential presence at the delivery end of the process. The ingredient goes into the making of the end product in the sense that without its absence the presence of the end product, as such, is rendered impossible. This quality should coalesce with the requirement that its utilization is in the manufacturing process as distinct from the manufacturing apparatus." 20. Dealing with a case ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
