9911796707
TMI Blog2004 (2) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... n has to be understood only with reference to the notification considered therein. The Board's circular dated 5-5-98 is also of no help to the assessee. In the above circular, what is mentioned is that even if imported consumables are used, the benefit of Notification No. 8/97 cannot be denied. In the present case, the contention taken by the Revenue which we are inclined to accept is that the imported materials used by the assessee in the manufacturing process are not consumables but raw material. The definition of the term 'consumables' from the Import-Export Policy also will not help the assessee in the light of the tests laid down by the Hon'ble Supreme Court in Collector v. Ballarpur Industries Ltd [ 1989 (9) TMI 102 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Activated Alumina (v) Palladium Catalyst (vi) Sodium Acid Pyrophosphate (vii) Filter Elements (viii) Hydrogen Catalyst (ix) Dequest 2041 (x) Molecular Sieve (xi) Activated Carbon free of Customs duty under Notification No. 13/81-Cus. dated 9-2-81 and Notification No. 53/97-Cus. dated 1-3-97 and that these goods are also used as raw materials, besides the indigenous raw materials, procured by them and therefore, the assessee is not entitled to exemption under Notification No. 8/97. Aggrieved by the above, the assessee filed appeal before the Commissioner (Appeals) who accepted the contention of the assessee that the above mentioned items are not raw materials but only consumables and therefore, the assessee cannot be denied the benefit of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the valid tests, in our opinion, could be that the ingredient should be so essential for the chemical processes culminating in the emergence of the desired end-product, that having regard to its importance in and indispensability for the process, it could be said that its very consumption on 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 utilizati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We are not able to accept the contention of the respondent that the decision has to be understood only with reference to the notification considered therein. The Board's circular dated 5-5-98 is also of no help to the assessee. In the above circular, what is mentioned is that even if imported consumables are used, the benefit of Notification No. 8/97 cannot be denied. In the present case, the contention taken by the Revenue which we are inclined to accept is that the imported materials used by the assessee in the manufacturing process are not consumables but raw material. The definition of the term 'consumables' from the Import-Export Policy also will not help the assessee in the light of the tests laid down by the Hon'ble Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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