2000 (7) TMI 303

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..... , Member (T)]. We have heard the departmental representative. The respondent is absent and unrepresentative despite notice. 2. The Tribunal, in its order, had taken the view that the small portion of the inserts and tips were parts of hand tools which were manufactured by the respondent, and utilised in the factory of their production for manufacture of hand tools (the vast majority of suc .....

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..... duty. The first question relates to insert and tips i.e. whether in the facts and circumstances of the case, they are intermediate or final product. That question is in fact a question of fact. This is what the Tribunal itself observed in its order in paragraph 3. Further, an intermediate product is one which arises at the intermediate stage between the raw material or component and the emergence .....

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..... The position is clear in the proviso to rule 57D(2), requiring use of such intermediate product in the factory of production, with the requirement that Chapter X procedure to be followed for use elsewhere. The fact that some portion (in this case a very large proportion) of the final product is cleared on payment of duty, does not render that quantity of goods used in the manufacture of the finis .....

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