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TMI Blog2019 (4) TMI 1588X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Tariff Act, 1985. They also clear these goods to domestic tariff area (DTA) subject to excise duty as applicable read with notification No. 23/2003-CE, dated 01.03.2003 (Sl.No.3). This exemption is subject to the condition in the notification that the manufacture of the goods is made fully out of raw materials produced and manufactured in India. The appellant manufactures polished granite slabs from raw material produced in India. However, they use imported epoxy resin and ager in the manufacture of these goods. The resin and ager are used in polishing the granite slabs by filling small cracks and finishes in the granite slabs. They were issued a show cause notice demanding differential duty along with interest on the ground that they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity for the process it could be said that its very consumption or burning up is its quality and value as raw material. In such a case, the relevant test is not its presence in the end product, but the dependence of the end product for its essential presence at the delivery end of the process. The ingredient goes into the making of the end product in the sense that without its absence the presence of the end product, as such, is rendered impossible. This quality should coalesce with the requirement that its utilisation is in the manufacturing process as distinct from the manufacturing apparatus." Ld. First appellate authority held that going by this test, the Epoxy Resin and Ager should be treated as raw materials during the manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals may be allowed. 5. Ld. DR reiterated the findings of the first appellate authority and argues that in terms of the judgment of Hon'ble Apex Court in the case of Ballarpur Industries Limited, epoxy resin and ager must be treated as raw material and not as samples. Consequently, the first appellate authority's order must be upheld and the appeals may be rejected. 6. We have considered the arguments on both sides and perused the records. The only question to be decided is whether or not the appellant is eligible for getting the exemption notification No. 23/2003-CE which is available for the goods manufactured by 100% EOU and cleared to DTA using entirely domestic raw material, considering that they have also used imported epoxy re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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