TMI Blog2008 (11) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... ue and exemption not deniable when this circular is withdrawn subsequently by Circular 614/5/2002 - E/1498/2005 - A/2497/2008-WZB/AHD, - Dated:- 26-11-2008 - Ms. Archana Wadhwa, Member (J) and Shri B.S.V. Murthy, Member (T) Shri S.J. Vyas, Advocate, for the Appellant. Shri R.S. Sarona, JDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)].- As per facts on record, appellant is a 100% EOU engaged in the manufacture of Latex examination and surgical gloves falling under Chapter 40. Notification No. 8/97-C.E., as amended provides concessional rate of duty to the clearances effected from a 100% EOU in DTA, provided the same are manufactured wholly from the raw materials purchased or manufactured in India. 2. Ina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gloves can be reduced. As such, it was pleaded that the use of WEBNIX is not as one of the raw materials but as consumables. Reliance was placed upon Board's circular No. 389/22/98-CX dt. 5-5-1998, vide which the benefit of the Notification was extended in case imported consumables are used. Ld. Advocate further submitted that in view of the above said circular, the appellant entertained a bona fide belief that use of WEBNIX being used as consumables, the benefit of the Notification was available. All the records were being maintained by them properly and it cannot be said that there was any suppression on their part so as to invoke the longer period of limitation. Ld. Advocate drew our attention to the findings of Commissioner (Appeals), w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case under a Sales Tax statutes, i.e. Andhra Pradesh General Sales Tax Act, 1957, this Court held that the word "consumable" takes colour from and must be read in the light of the words that are its neighbours "raw materials", "component part", "sub-assembly part" and "intermediate part". So read, it is clear that the word "consumables" therein 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 the fact that it has got consumed therein. It is for this reason, a departure was made from the concept that "consumable" fall within the broader scope of the words "raw materials". Reference in this connection can be made to the view expressed in Deputy Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sult in denial of the benefit of Notification inasmuch as the catalyst only enhances the chemical reaction and cannot be held to be a raw material. Similarly, in the case of M/s. Gem Granites [2007 (216) E.L.T. 153 (Tri.-Chennai)], benefit of Notification No. 8/97 was extended by observing that the Epoxy resins used by the EOU in the manufacture of granite slabs out of indigenously procured granite blocks were not to be considered as raw material but only as consumable. 8. In the light of the ratio of law as declared in the above decisions, we agree with the ld. Advocate that WEBNIX is not a raw material but a consumable and the fact that the same was imported will not result in denial of the benefit of the Notification in question. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of such subsequent circular issued on 31-1-2002, withdrawing the earlier circular of 1998, the benefit cannot be extended to the appellant. We find no justification in the above reasoning inasmuch as it stands decided by umpteen number of decisions of the Hon'ble Supreme Court that the circulars issued by the Board are binding upon the Revenue and Revenue cannot take a contrary view. Reference in this regard is placed upon the Hon'ble Supreme Court's decision in the cases of UOI v. Arviva Inds. (I) Ltd. [2007 (209) E.L.T. 5 (S.C.) = 2008 (10) S.T.R. 534 (S.C.)], CCE, Vadodara v. Dhiren Chemicals Inds. [2002 (139) E.L.T. 3 (S.C.)], State of Kerala v. Kurian Abraham Pvt. Ltd. [2008 (224) E.L.T. 354 (S.C.)] as also in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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