2015 (10) TMI 441

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....rt Oriented Unit(EOU) which is engaged in the manufacture of excisable goods viz., Phthalic Anhydride, Waste Water, Waste Steam and Low Boiling Component. The unit has been set up in terms of Letter of Permission dated 05.12.1991 for manufacture and export of Phthalic Anhydride falling under Chapter sub-heading 2917.90 of the Schedule to the Central Excise Tariff Act, 1985. The assessee was permitted to sell certain quantities of the aforesaid product in Domestic Tariff Area (DTA) by the Development Commissioner, SEEPZ, Mumbai in terms of the provisions of prevalent Export Import Policy (for short 'EXIM Policy') and subject to various terms and conditions as stipulated from time to time. The assessee wanted to take benefit of Notifi....

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.... The outcome of the appeals would depend upon the determination of the issue as to whether Vanadium Pentoxide is the raw material or not. The Order-in-Original was passed holding that the respondents were not eligible to avail the benefit of the said Notifications. However, the Tribunal, in appeal, reversed the order with its finding that it is not the raw material. Since the term 'raw material has not been defined anywhere except in the EXIM Policy, as far as the Commissioner is concerned, he had adopted the definition therefrom. However, as per the Tribunal, the said definition contained in the EXIM Policy would be of no relevance. To this extent the Tribunal is right in its approach because under EXIM Policy catalyst is covered as cap....

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....al reactions, itself remains uninfluenced and unaltered and retains its independent character. It is also not in dispute that it remains outside the product and does not form part of the product. This has been accepted even by the Commissioner and finding to this effect is given by stating that it is not directly consumed in the process of manufacturing and normal life of the catalyst is 36 months, after which this catalyst has to be replaced by a new one. On the basis of the aforesaid it becomes crystal clear that the catalyst which retains its character, remains outside the end product, remains uninfluenced and unaltered cannot be treated as raw material. Mr. A.K. Panda, learned senior counsel appearing for the Department, heavily r....