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TMI Blog2018 (12) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... he term Consumables as per the Apex Court refers only to material which is utilized as an input in the manufacturing process but is not identifiable in the final product, by reason of fact that it has got consumed therein. From the nature of the use of the imported item, it is evident that the item is in the nature of the consumable. The purport of the CBEC Circular is to allow the benefit of the Notification 08/1997 as long as the final products are manufactured by EOU exclusively out of indigenous raw materials notwithstanding the of use of consumables, even if imported. Benefit of notification cannot be denied - appeal allowed - decided in favor of appellant. - Appeal No. E/617/2008 - FO/76712/2018 - Dated:- 5-10-2018 - SHRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, it was noticed that for manufacture of the rolled products cleared in DTA, in addition to the indigenous raw materials, the appellant also made use of an imported item Somentor-43 . The item was classifiable under Customs Tariff 27101910 as Superior Kerosene Oil . As per the Technical Write-up of the item, it is used as a coolant and is spread on the rolled products for cooling them during the process of rolling. The Department took the view that use of Somentor-43 , which is an imported item; disentitled the appellant to the benefit of both Notifications. Revenue took the view that the appellant was liable to pay duty in terms of Notification No. 02/95-CE dated 01/04/1995 as well as Notification 23/2003 (Serial No. 2). In terms of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22/2002-CX dt.28.03.2002 The benefit of the Notification No. 08/1997 was advised to be denied by the CBEC in the circular dated 05/05/1998 but the same was allowed to goods manufactured out of indigenous raw materials even if imported consumables are used in the Circular dated 31/01/2002 and in the further clarification dated 28/03/2002. He relied on the decision of the Hon ble Supreme court in the case of Vanasthali Textile Industries Ltd. Vs. CCE reported in 2007 (218) ELT-3 (SC). In this case, the Apex Court had examined the entitlement to the benefit of Notification 08/1997 when imported consumables were used. The benefit was allowed by the Apex Court. (iii) He also submitted that the cost of the coolant formed an insignificant pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have perused the Technical Write-up of the item Somentor-43 . The item has been used in the form of coolant during the process of manufacture in the appellant s factory. 11. In these circumstances, the question for decision is whether the conditions of the Notification have been satisfied inspite of the use of the imported coolant. We find that the CBEC has also clarified through various conflicting circulars. The circular dated 31/01/2002 proposed to deny the benefit but the subsequent circular dated 28/03/2002 advised to extend such benefit. In this connection, we have also gone through the decision of the Apex Court in the case of Vanasathali Textile (Supra) in which the Apex Court examined the scope of Notification 08/1997 ibid. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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