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TMI Blog2008 (1) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue proceeded to deny the benefit of Notification No. 8/97-C.E. dated 1-3-1997 in respect of the raw material indigenously procured in India. The Respondents are 100% E.O.U. The Commissioner (Appeals) after a detailed consideration held that that the raw materials used for the manufacture of polished granite slabs were consumables, namely Epoxy resin and Ager; and therefore they are eligible for the benefit of Notification. This has been challenged by the Revenue in these appeals. 2. The learned SDR took us through the grounds made by the Revenue in the appeals and submits that various consumables used in the manufacture of polished granite slabs are not eligible for the benefit of Notification No. 8/97-C.E., dated 1-3-1997. She prays ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 quantity should coalesce with the requirement that its utilization is in the manufacturing process as distinct from the manufacturing apparatus." This test was applied by this Bench in the case of Forbes Gokaka Ltd. v. CCE (supra) wherein imported wax was used for gazing cotton yarn. After due consideration it was seen that the said imported wax would be removed before it is sent for dyeing and does not remain as a raw material. Hence, the benefit of notification denied was held not correct and the extended period was also set aside. The same view was expressed by this Bench by following this r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying the item to be consumables cannot be discounted and they are required to be taken into consideration. 12.2. To sum up, there is no merit in the Commissioners orders confirming demands and they are required to set aside by allowing the parties appeals. Parties' appeals are allowed. In so far as the Revenue's appeal is concerned the order passed by the Commissioner (A) is correct. He has examined the definition of consumables and has correctly decided the issue in the fight of the circulars given. There is no merit in this Revenue's appeal and the same is rejected." 5. We find that the issue is fully covered in assessee's favour. Therefore, this stay application and the appeal are dismissed as there is no merit in the appeal." Respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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