TaxTMI 
TaxTMI 
2005 (7) TMI 234
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....ton Yarn manufactured in the factory is cleared for export as well as for Domestic Tariff Area (DTA). The DTA clearances are being effected on the basis of the permissions given by the Assistant Development Commissioner, Cochin Export Processing Zone, Sub-Office, Bangalore, from time to time. The said DTA clearances were done by availing the benefit of Notification No. 8/97-CX dated 1-3-1997 and duty discharged in terms of the Notification. The Department initiated proceedings and contended that the assessee had wrongly availed the said Notification by suppressing the fact of using certain imported raw materials in the manufacture of Cotton Yarn cleared to the DTA. The appellants were importing Wax, which they considered it as a 'Consum....
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....ax is consumed in the manufacturing of yarn and yarn can be manufactured without wax. The learned Counsel referring to the entire material on record submits that the item is not a raw material as it is not essential for manufacture of yarn. The Textile Ministry has also given a clarification that Wax cannot be treated as Raw material of knitting yarn. He refers to the Tribunal ruling rendered in the case of Nahar Spinning Mills v. CCE, Bhopal - 2002 (149) E.L.T. 498 (Tri.- Del.) wherein it has been clearly held that synthetic wax roller used for in the manufacture of yarn is a consumable. He submits that this judgment clearly applies to the facts of the case and the appeal is to be allowed on merits. Even on limitation, the learned Couns....
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....ion Engineering Co. Ltd. - 2004 (163) E.L.T. 290 (S.C.) to submit that there was misdeclaration and details have not been filed and hence larger period was invocable. On the same point reliance was placed on CCE v. Hindustan Zinc Ltd. - 2004 (166) E.L.T. 145 (S.C.) and that of T.T.G. Industries Ltd. v. CCE - 2004 (167) E.L.T. 501 (S.C.) and Nizam Sugar Factory v. CCE, Hyderabad - 1999 (114) E.L.T. 429 (Tri.- LB); Madras Petro-Chem. Ltd. v. CCE, Madras - 1999 (108) E.L.T. 611 (S.C.). The learned Counsel distinguished these judgments and relied on the Apex Court judgment rendered in the case of CCE v. Reliance Silicones Ltd. - 2004 (174) E.L.T. 3 (S.C.) = 2004 (65) RLT 655 (SC) wherein the Apex Court has held that when test results are availa....
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....th the product till the end of its life. The Tribunal, in the case of Nahar Spinning Mills, has clearly held that the item Wax, used for grazing the yarn or the yarn being coated with Wax is only a Consumable. Furthermore, in terms of the experts, the wax is removed thoroughly before dyeing as stated by Dr. K.P. Chellamani, Deputy Director of SITRA. The evidences of Dr. K.P. Chellamani and Shri S.K. Patra, Director of Textile Ministry had clearly opined that the item is not a Raw material. The evidence of Shri B.P. Todankar, Senior Textile Technologist of the Bombay Textile Research Association is also in favour of the appellant. In view of the enormous evidence on record, the appellants contention that wax is Consumable is required to be a....