2014 (3) TMI 157

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....facts on record, the assessee is engaged in the manufacture of apple juice concentrate and during the relevant period they were availing the benefit of Notification No.13/98-CE dated 2.6.98 and 23/2003-CE dated 31.3.2003. The said notifications provide concessional rate of duty in respect of the final product if the same is manufactured wholly out of indigenous raw materials. Admittedly, the assessee’s raw materials are apples which are grown in India. However for ripening of these apples, the assessees use imported chemicals being calcium carbide. Further for facilitating extraction of juice from the apples imported Pectin Enzymes are used. 3. Revenue by entertaining a view that use of the said ripening chemicals & Pectin Enzymes amou....

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.... as long as the raw materials are indigenous. Applying the ratio of the said decisions to the facts of the present cases, he submits that admittedly, the apples used by the assessees for extraction of juice were not imported apples and they were indigenously grown. As such, the assessees are rightfully entitled to the benefit of concessional rate of duty in terms of the said notifications . 5. Ld. Authorised Representative appearing for the Revenue reiterates the reasoning of the lower authorities and submits that inasmuch as the assessees have admittedly used the imported ripening chemicals and imported accelerator Enzymes it has to be held that final product has not been manufactured out of 100% indigenous raw materials, thus making th....

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....ported consumable for manufacture of final product would hit the condition of notification so as to deny the benefit to the assessee. In remand proceedings, the Tribunal vide its order reported as 2010 (261) ELT 229 (Tri-Bang.) held that use of various imported items which get consumed in the manufacture of hydrogen peroxide is no use of imported raw materials. Further, the Tribunal in the case of C.C.E. Hyderabad vs. Sri Vajra Granites Ltd. - 2008 (86) RLT 459 (CESTAT - Ban.) has held that use of imported Granite slab, Epoxy resin and Ager in the manufacture of granite slabs would not amount to use of imported raw materials inasmuch as the said goods have to be considered as consumable. 7. The ratio of the above decisions is to the effe....