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TMI Blog2018 (6) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. [2017 (1) TMI 290 - CESTAT MUMBAI] held that the benefit of N/N. 8/97 is available even if the final products are manufactured using imported consumables because the limitation when the notification is only that the goods should be manufactured using raw materials manufactured or produced in India. There is no restriction that the consumables which are used in the manufacture also have to be domestically manufactured - benefit of notification allowed. Whether the goods in question are raw materials or consumables? - Held that:- We find nothing in the order of Commissioner (Appeals) that the assessee had produced any evidence to substantiate their claim that these are consumables and not raw materials - Commissioner (Appeals) has err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to the benefit of notification No. 23/2003-CE. Show cause notices were issued to the assessee and the demand was confirmed by the Additional Commissioner in the Order-in-Original No. 43/2008-09. This Order-in- Original was set aside by the Commissioner (Appeals) on an appeal by the assessee on the following grounds: (a) The inputs used are consumables and not raw materials and the final products were manufactured wholly from the raw materials produced or manufactured in India. (b) The assessee has procured the goods from dealers on payment of duty and they have not imported the goods themselves and hence they have not gained anything compared to the DTA units procuring the same imported inputs on payment of duty. (c) The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finite term. In the case of chemical technology, the ingredients used may be (a) of those which may retain their dominant individual identity and character throughout the process and also in the end product and (b) those which, as a result of inter-connection with other chemicals/ingredients, might themselves undergo chemical or qualitative changes and in such altered form find themselves in the end products and (c) those which like catalytic agents while influencing and accelerating the chemical reactions, may themselves remain uninfluenced and unaltered and remain independent of and outside the end product and (d) those which might be burnt up or consumed in the chemical reactions. The respondent on the other hand relied on the judgment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r produced in India. There is no restriction that the consumables which are used in the manufacture also have to be domestically manufactured. The position is also clear in Board s circular No. 442/8/1999-CX, dated 4.3.1999 (supra) permitting the benefit of notification but the subsequent circular No. 85/2001-CUIS, dated 21.12.2001 (supra) reversed it. However, since the Supreme Court has settled the matter, we find that regardless of the Board s circulars and the period in which the clearances were made for the goods which are manufactured using imported consumables but domestically manufactured or produced raw materials, the benefit of notification No. 8/97 is available. 7. The next question is whether the goods in question are raw mat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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