TaxTMI 
TaxTMI 
2017 (1) TMI 290
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to manufacture and export 'steel files and rasps.' Appellant has also cleared seven consignments of 'files' into the domestic tariff area between November 2000 and September 2005. Likewise, fifteen consignments of 'scrap' and 'rejects' were also cleared during this period. All the clearances were effected on payment of duty of 16% which is a concession available to clearances from such units as are eligible for the benefit of notification no. 8/1997 dated 1^st March 1997 and its successor instrument, notification no. 23/2003 dated 31^st March 2003. 2. Normally, clearances into the domestic tariff area (DTA) are permissible, under section 3A of Central Excise Act, 1944, on discharge of duty liability of half the aggregate of customs ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es and that they use only domestically procured consumables for manufacture of goods cleared domestically. 6. Learned Authorized Representative contests this defence and asserts that, at no stage, did the appellant produce any evidence that domestic clearances were manufactured out of domestically procured goods. On the contention that use of imported consumables is not a ground for denial of exemption, it was canvassed that circular no. 614/5/2002-CX dated 31^st January 2002 withdrew the earlier instruction that allowed use of imported consumables for manufacture of goods that were cleared into domestic tariff area. 7. Learned Counsel for appellant took us through the exemption notifications in his elaborate arguments. We note that t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e of the Government of India. These units are permitted to procure all or any resource for manufacture without payment of duty either by imports or from domestic sources. In return, they are obliged to be net foreign exchange positive; in other words, every unit of foreign currency spent on procurement must be offset by exports and in the event of failure to do so within the first two five-year blocks, duty liability is fastened on the assessee. In computing the annual foreign exchange earning target, the actual consumption of raw materials and the value of imported consumables and spares are to be taken into account. As far as capital goods are concerned, the annual amortisation at a tenth of the import value is to be included. It is....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve has relied upon the decision of the Hon'ble Supreme Court in Collector of Central Excise v. Ballarpur Industries Ltd [1989 (43) ELT 804 (SC)] and Vansthali Textile Industries Ltd v. Commissioner of Central Excise, Jaipur [2007 (218) ELT 3 (SC)] to reinforce the conclusion of the adjudicating Commissioner that 'barium chloride' and 'corundum sand' are not 'consumables' but 'raw materials', we find that a pointed observation of the Hon'ble Court is most relevant, viz., '5... ... The expression 'Raw Material' is not a defined term. The meaning to be given to it is the ordinary and well-accepted connotation in the common parlance of those who deal with the matter.' We would go so far as to advert that the decision in re Vanasthal....