TaxTMI 
TaxTMI 
2003 (1) TMI 224
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....the consent of both the sides. 2. Shri R. Krishnan, learned Advocate, submitted that the Appellants are a 100% Export-Oriented Undertaking (E.O.U.); that in terms of Notification No. 8/97-C.E., dated 1-3-97, partial exemption from duty is available on goods sold in Domestic Tariff Area (DTA) subject to the condition that the goods have been manufactured wholly from raw materials produced or manufactured in India; that they were admittedly procuring all the required raw materials from domestic manufacturers in India; that they also imported (i) Carboxymethyle Cellulose - Finifix 30 which is used for sizing of single yarn to give strength to the yarn during weaving after which the woven towels are washed to remove completely the sizing mat....
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....nsumables given in the EXIM Policy, the benefit of Notification No. 8/97 cannot be denied to the Appellants. The learned Advocate also mentioned that the department has relied upon the decision in the case of CCE, Indore v. Century Denim, EOU - 2001 (129) E.L.T. 657 wherein the Tribunal relying upon the decision in the case of CCE v. Ballarpur Industries Ltd. - 1989 (43) E.L.T. 804 (S.C.) has held that the benefit of Notification No. 8/97 is not available as the 100% EOU has used the imported Indigo Pure Dye, fixing agents, thread button, stockers, etc.; that the Tribunal has not correctly applied the decision in Ballarpur Industries case inasmuch as the Supreme Court clearly observed that the said decision was in the facts and circumstance....
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....making of end-product in the sense that without its absence the presence of the end-product, as such, is rendered impossible." The learned SDR, further, mentioned that the Tribunal following the decision in Ballarpur Industries case has held in Century Demin that with the test enunciated by the Apex Court, the imported goods were raw material as without their presence the finished product would not have come into existence. He finally mentioned that the Tribunal had also considered the Circular dated 5-5-98 and held that "since the materials with which we are concerned in these appeals are, as per the test laid down by the Apex Court the raw materials, they cannot be termed as consumables falling within the purview of C.B.E. & C. Circular."....
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....le to be called the raw material. The test laid down is essentiality of the material for the manufacture of the end-product. The issue regarding availability of Notification No. 8/97 came for consideration before the Tribunal in the case of Century Denim wherein also manufacturers claimed that the materials imported by them from abroad were consumables. The Tribunal disallowed the benefit of Notification No. 8/97 holding that the imported raw material gave the quality and utility to finished product and "since these imported materials went into the process to make the finished product acquire the required quality and utilisation" they are raw materials. The learned SDR has pointed out that one of the material imported was wax which is used ....