TaxTMI 
TaxTMI 
2009 (5) TMI 264
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....n 2007 (218) E.L.T. 3 (S.C.), remitted the matter to the Tribunal to consider the case on the basis of the observations made thereunder. In compliance of the Order of the Hon'ble Supreme Court, both the appeals are being taken up together for hearing. 2. The relevant facts of the case, in brief, are that the appellants are a 100% Export Oriented Unit (EOU), engaged in the manufacture of "Terry Towels" classifiable under sub-heading No. 6302.00 of Schedule to the Central Excise Tariff Act, 1985. The appellant cleared the finished goods partly in Domestic Tariff Area (DTA) on payment of concessional rate of duty in pursuance of the Notification No. 8/97-C.E., dated 1-3-97. The condition of notification is that the goods have been manufacture....
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.... part", "sub-assembly part" and "intermediate part". So read, it is clear that the word "consumables" therein refers only to material which is utilised 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 express in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. M/s. Thomas Stephen & Company Ltd., Quilon [1988 (2) SCC 264] and Coastal Chemicals Ltd. v. Commercial Tax Officer, A.P. and Ors. [1999 (8) SCC 465]. In the cases at hand "co....
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....in the said case, the Tribunal viewed indigo pure dyeing is present in the finished goods. But, in this case, sizing imported materials is not present in the finished goods viz. towels. 4. Ld. DR on behalf of the Revenue reiterates the findings of the Commissioner (Appeals). He submits that the Tribunal in the case of Commissioner of Central Excise, Coimbatore v. Meridian Industries Ltd. - 2007 (217) E.L.T. 576 (Tri.-Chennai) held that the imported wax disc used in the manufacture of cotton yarn cannot be considered as a consumable and has to be held as raw materials and benefit of Notification No. 8/97 is not available. He further submits that the Hon'ble Supreme Court in the case of CCE v. Ballarpur Industries Ltd. - 1984 (43) E.L.T. 804....
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.... form a part of the end product. Item which are substantially or totally consumed during a manufacturing process will be deemed to be consumables. 7(34) 'Raw material' means (i) basic materials which are needed for the manufacture of goods, but which are still in a raw, natural, unrefined and unmanufactured state, and (ii) for a manufacturer, any material or goods which are required for manufacturing process, whether they have actually been previously manufactured, or are processed or are still in a raw or natural state." 6. Thus, the issue has to be decided as to whether the sizing material is a consumable or not. Ld. DR relied upon the decision of the Tribunal in the case of Century Denim & Ors. (supra). We find that in the said case, B....