Exemption for raw materials denied where nickel catalyst, activated carbon and phosphoric acid were not treated as qualifying components.

Nickel catalyst, activated carbon and phosphoric acid were considered for exemption as raw materials or components under Notification No. 201/79-C.E., as amended. The Tribunal followed its earlier view that nickel catalyst and bleaching activated earth were not raw materials used in the manufacture of vegetable product, and applied the same reasoning to phosphoric acid, treating it as a cleansing agent with a similar functional role. On that basis, the items were not accepted as eligible raw materials or components for the notification. The assessee was therefore held not entitled to the exemption benefit claimed.

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Issues: Whether Nickel Catalyst, Activated Carbon and Phosphoric Acid were raw materials or components eligible for exemption under Notification No. 201/79-C.E. dated 04.06.1979, as amended by Notification No. 105/82 dated 01.03.1982.

Analysis: The Tribunal followed its earlier view that nickel catalyst and bleaching activated earth were not raw materials for the manufacture of vegetable product and found no reason to depart from that ratio. The same reasoning was applied to phosphoric acid, treated as a cleansing agent with a similar role for the purpose of the notification.

Conclusion: The items were not accepted as raw materials or components for the exemption claimed, and the assessee was held not entitled to the benefit of the notification.

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