TMI Blog2004 (2) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 as is in excess of an amount equal to the duty of excise leviable under Section 3 of the Act on like goods produced or manufactured in India, other than in a 100% EOU. 2. The assessee contended that the finished goods, namely Hydrogen Peroxide, removed by them from their EOU to the DTA, was manufactured wholly from the raw materials produced in India. The above contention was not accepted by the original authority. It was held that the respondent imported a number of other raw materials like (i) Methyl Cyclothyexyl Acetate (ii) Solvesso 150 (iii) Ethylanthrquinone (iv) Activated Alumina (v) Palladium Catalyst (v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries Ltd. Hon'ble Supreme Court held that since Sodium Sulphate is an essential chemical ingredient in the Chemistry of paper technology, it is to be treated as raw material by this reason alone irrespective of the fact that in the course of chemical reaction this ingredient is consumed and burnt and does not retain its identity in the end-product. After observing that expression 'raw material' is not a defined term, the Hon'ble Supreme Court laid down certain tests in order to identify the raw material as follows :- "The question in the present case is whether the ingredients of the last mentioned class qualify themselves as and are eligible to be called 'Raw Material' for the end-product. One of the valid tests, in our opinion, cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce on Board's Circular No. 389/22/98-CX., dated 5-5-98. Our attention was drawn to the definition of the term 'consumables' in Import-Export Policy which reads as follows :- "'Consumables' means any item which participates in or is required for a manufacturing process, but does not form a part of the end-product. Items which are substantially or totally consumed during a manufacturing process will be deemed to be consumables." 6. We are inclined to accept the contention raised on behalf of the Revenue. A reading of the decision of the Supreme Court in Collector v. Ballarpur Industries Ltd. would clearly show their Lordships were laying down general tests in order to distinguish raw materials from consumables. We are not able to accept ..... X X X X Extracts X X X X X X X X Extracts X X X X
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