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TMI Blog2009 (5) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... is fit and proper that the present matter should be remanded to the Original Authority to decide afresh on the basis of the evidences and process of manufacturing as to whether sizing materials are consumables or raw materials and to decide Whether benefit of notification ibid was available - we set aside the impugned order and remand the matter to the Adjudicating Authority to decide afresh in the light of the decision of the Hon’ble Supreme Court in the case of Vanasthali Textile Industries Ltd. - E/2018/2002 and 2845/2002-D - 404-405/2009-EX(PB) - Dated:- 27-5-2009 - Shri R. Krishnan, Advocate, for the Appellant. Shri B.S. Suhag, DR, for the Respondent. [Order per: P.K. Das, Member (J)]. - In this case, the Tribunal by Final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y denied the exemption benefit on the ground that the sizing materials used by the appellants were not produced or manufactured in India. The Commissioner (Appeals) upheld the Adjudication Order. The Tribunal vide Final Order dated 15-1-2003 rejected the appeals filed by the appellants. The appellants filed appeal before the Hon'ble Supreme Court. By Order and Judgment dated 26-10-2007, the Hon'ble Supreme Court remanded the matter to the Tribunal with certain directions as under:- "19. Since the reliance on dominant ingredient test in regard to cost variation has not been considered by CEGAT though the same has relevance, the matter is remitted to the CEGAT to consider those aspects. It shall also consider whether the items can be consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006 (199) E.L.T. 263 (Tri.-Bang.) held that imported polyvinyl alcohol (PVA 117) used in process of sizing as a consumable, which is washed off before yarn is used for weaving, benefit of exemption notification is available as subject material is not a raw material but a consumable. He relied upon the Board's Circular No. 614/5/2002-CX., dated 31-1-2009. He also submits that the Hon'ble Supreme Court directed to consider the dominant ingredient test in regard to cost variation. He placed the Chartered Accountant's Certificate dated 1-5-2009 certifying that the percentage of cost of Carboxy mytheyl cellulose fin fix 30 to the cost of the Towel manufactured by use of the said fin fix comes to 0.21%. He fairly submits that this Tribunal in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamined by the lower authority and matter was remanded for fresh decision in the light of Apex Court judgment in the case of Vanasthali Textile Industries Ltd. (supra). 5. After hearing both the sides and on perusal of the records, we find that the Notification No. 8/97-C.E., dated 1-3-97 exempted the finished goods, rejects and waste or scrap specified in the schedule to the Central Excise Tariff Act, 1985 and produced or manufactured, in a 100% Export Oriented Undertaking or a Free Trade Zone wholly from the raw materials produced or manufactured in India and allowed to be sold in India. The main contention of the ld. Advocate is that the sizing agent is the consumable item and, therefore, it is not raw material. He strongly relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds. We find that the Tribunal in the case of Santogen Exports Ltd. (supra) while dealing with the exemption Notification No. 8/97 in respect of Dilasoft, a softening agent, an imported materials used in the manufacture of Towels, remanded the matter to the Original Authority to decide afresh in the light of the decision of the Hon'ble Supreme Court in the case of Vanasthali Textiles Industries Ltd. (supra). In our view, it is fit and proper that the present matter should be remanded to the Original Authority to decide afresh on the basis of the evidences and process of manufacturing as to whether sizing materials are consumables or raw materials. 7. In view of the above discussions, we set aside the impugned order and remand the matter to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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