TaxTMI 
TaxTMI 
2016 (9) TMI 780
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....s that, the goods should have produced or manufactured in 100% EOU wholly form the raw materials produced or manufactured in India. The Department noticed that the assessee have imported "Epoxy Resin" and used the same in the manufacture of polished granite slabs; that he resin has double effect of assuring the strength of the slabs and providing a clean feeling of touch; that during the period (i) from July, 2010 to December,2010, the assessee imported 4110 Kgs of "Epoxy Resin" valued at Rs. 22,73,070/- and cleared a quantity 12,18,623 Sq. Meters of polished granite slabs valued at Rs. 73,90,191/- as DTA sales, on which the assessee are liable to pay differential duties of Rs. 12,22,574/- and (ii) from January, 2011 to June, 2011, the assessee imported 4740 Kgs of "Epoxy Resin" valued at Rs. 29,65,015/- and cleared a quantity 14,712,272 Sq. Meters of polished granite slabs valued at Rs. 1,19,53,654/- as DTA sales, on which the assessee are liable to pay differential duties of Rs. 19,78,154/-. Hence, two show cause notices dated 20.07.2011 and 29.11.2011, were issued to the assessee for the above periods, proposing to recover the said differential duties along with interest and pen....
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....accepted connotation in the common parlance of those who deal with the matter. The ingredients used in the chemical technology of manufacture of any end-product might comprise, amongst others, of those which may retain their dominant individual identity and character throughout the process and also in the end-product; those which, as a result on interaction with other chemicals or ingredients, might themselves undergo chemical or qualitative changes and in such altered form find themselves in the end-product; those which, like catalytic agents, while influencing and accelerating the chemical reactions, however, may themselves remain uninfluenced and unaltered and remain independent of and outside the end-products and those, as here, which might be burnt-up or consumed in the chemical reactions. The question in the present case is whether the ingredients of the last mentioned class qualify themselves as and are eligible to be called "Raw-Material" for the end-product. One of the valid tests, in our opinion, could be that the ingredient should be so essential for the chemical processes cluminating in the emergence of the desired end-product, that having regard to its importa....
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....om the raw materials produced or manufactured in India. Admittedly, the appellants' product was manufactured out of indigenously procured granite blocks. However, in the process of cutting and polishing of the said raw material, the appellants had used certain imported epoxy resins. These resins filled any hairline cracks, fissures or holes which might arise on the surface of the slabs on cutting and polishing. The department took the view that an imported 'raw material' had been used in the manufacture of the granite slabs and, therefore, the benefit of the Notification would not be available to the same. The appellants contested this view in their reply to the show cause notice issued in this behalf. Eventually, this dispute was adjudicated upon by the original authority which denied the benefit of the Notification to the assessee and confirmed a demand of duty of Rs. 1,46,656/- against them. This demand was sustained by the Commissioner (Appeals). Hence the present appeal before us. 3. After hearing both sides and considering their submissions, we find that, on a similar set of facts, the Tribunal's co-ordinate Bench at Bangalore held, in the case of certain other ....
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....e ingredients goes into the making of end-product in the sense that without its absence the presence of the end-product, as such, as rendered impossible. This quantity should coalesce with the requirement that its utilization is in the manufacturing process as distinct from the manufacture apparatus". It is submitted that such a possibility does not arise and polished granites are being removed in majority of cases where there are no cracks and fissures without use of these two materials. They are consumables and as such, the issue is covered by the judgment of this bench rendered in the case of Forbes Gokak Ltd. v. CCE - 2005 (192) E.L.T. 1000 wherein imported wax used for grazing cotton yarn was held to be consumable. It was submitted that this ratio would apply to the present case, as the judgment refers to the Apex Court judgment rendered in the case of CCE v. Ballarpur (supra). Further reference is made to the judgment of this bench which has follows the Forbes Gokak Ltd. v. CCE rendered in the case of Maruti Cottex Ltd. v. CCE, Calcutta - 2006 (199) E.L.T. 263 wherein also imported polyvinyl alcohol (PVA 117) used in processing of sizing has been considered as consumables, as....
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.... of Forbes Gokak Ltd. (supra) and Maruti Cottex Ltd. (supra) in the light of the Apex Court judgment in the case of CCE v. Ballarpur Inds. Ltd. (supra) would clearly apply to the facts of these cases. The clarificatory Board Circular and letters issued by the Development Commissioners clarifying the item to be consumables cannot be discounted and they are required to be taken into consideration. 12.2 To sum up : There is no merit in the Commissioners orders confirming demands and they are required to set aside by allowing the parties' appeals. Parties' appeals are allowed. Insofar as the revenue appeal is concerned the order passed by the Commissioner (A) is correct. He has examined the definition of consumables and has correctly decided the issue in the light of the circulars given. There is no merit in this revenue appeal and the same is rejected. c. Bannari Amman Sugars Ltd. Vs. CCE, Salem [2009 (241) E.L.T. 433 (Tri. - Chennai)] -Relevant portion is reproduced below:- 4. I have carefully considered the case records and the submissions made by both sides. I find that the Tribunal had decided the dispute in favour of the assessees in the Gem Gran....