Raw material for intermediate manufacture can qualify for recognition when it forms part of the final product process.

Polythene/endothene and H.N./H.D.P.E. granules were held includible in the dealer's recognition certificate as raw material for laminated jute bags because they were used to make polythene sheets that formed an integral part of the manufacturing process. The Tribunal treated the possibility that the dealer might not actually use the polythene later as a matter for departmental action, not a reason to deny recognition at the certification stage. The inclusion of the granules was therefore justified, and the direction to amend the recognition certificate was upheld.

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Issues: Whether polythene/endothene granules and H.N./H.D.P.E. granules could be included in the dealer's recognition certificate as raw material for the manufacture of laminated jute bags.

Analysis: The dealer was engaged in the manufacture of laminated jute bags, in which polythene sheets were used. The Tribunal found that if the dealer manufactured the polythene itself or got it manufactured through another person and such polythene was used in laminated jute bags, the granules constituted raw material for the manufacture of laminated jute bags. The possibility that the dealer might not actually use the polythene so manufactured was treated as a matter for departmental action if it arose later.

Conclusion: The inclusion of the granules in the recognition certificate was justified and no interference was called for.

Final Conclusion: The revision failed and the Tribunal's direction to amend the recognition certificate was upheld.

Ratio Decidendi: Materials used to produce an intermediate product that is in turn used in the manufacture of the final product can qualify as raw material for that final product when they form an integral part of the manufacturing process.

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