2005 (3) TMI 620

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.... the manufacture of Cotton fabrics and is of 100% Export Oriented Unit (EOU). The applicants were claiming the benefit of Notification 8/97-C.E., dated 1-3-97 which exempts finished products, rejects and waste and scrap which is produced or manufactured of 100% EOU wholly from the raw-material produced or manufactured in India and allowed to be sold in India. Applicants are using Indigo Pure for coloring the Cotton yarn and fabrics sold in DTA. Indigo Pure was not being procured indigenously by the applicants but were being imported. The benefit of notification was denied on the ground that as imported Indigo Pure Dye is being used by the applicants, therefore, they are not entitled for the benefit of Notification No. 8/97-C.E., dated 1-3-9....

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....e Revenue, which is still lying with the Revenue. The contention of the applicants is also that the decision of the Hon'ble Supreme Court whereby the appeal filed by M/s. Maral Overseas Ltd. has no impact on the case of the applicants as in the case of M/s. Maral Overseas Ltd. the issue was not in respect of the imported Indigo pure dye. The contention is that applicants approached the Hon'ble Madhya Pradesh High Court where their Petition was dismissed and their appeal before the Division Bench is still pending. Therefore, the issue involved in the present appeal has not attained finality. The contention of the applicants is also that as per the provisions of Notification No. 8/97-C.E., dated 1-3-1997, the goods manufactured by 100% EOU wh....

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....ached Hon'ble Madhya Pradesh High Court and the Hon'ble High Court dismissed their Petition against the decision of the Tribunal vide order dated 22-11-2002. Paras 15 and 16 of the said order is reproduced below : "The Tribunal has also considered the matter on the same lines and has held that the use of 'Indigo pure' dye is a raw material in the manufacture of Denim fabric. The question which can be considered whether the use of small quantity of imported dye in bringing the end product into existence even in that case whether it can be treated that the finished product has come into existence wholly from cotton. I think it cannot. For the production of Denim fabric basic raw material may be cotton, but if an imported dye is used, in th....