ASIAN PEROXIDES LTD Vs. COMMNR OF CENTRAL EXCISE

JUDGEMENT

(1.) In these appeals challenge is to the order by the Customs Excise and Service Tax Appellate Tribunal, South Zonal Bench, Bangalore (in short the CESTAT). Before the CESTAT the issue related to the eligibility of the appellant for the benefit of exemption under Notification No.8/97-CE dated 1.3.1997 for Hydrogen Peroxide manufactured and cleared by the appellant to the Domestic Tariff Area (in short the DTA). The Notification in question exempts finished products manufactured in a 100% Export Oriented Unit (in short the EOU) wholly from the raw materials produced or manufactured in India and allowed to be sold in India from so much of the duty of excise leviable thereon under Section 3 of the Central Excise Act, 1944 (in short the Act) as is in excess of amount equal to the duty of excise leviable under Section 3 of the Act on like goods produced or manufactured in India other than in a 100% EOU.

(2.) The original authority did not accept the stand of the appellant that the finished goods namely Hydrogen Peroxide removed by them from their EOU to the DTA was manufactured wholly from the raw materials produced in India.

(3.) Aggrieved by the adjudication, assessee appellant filed an appeal before the Commissioner of (Appeals) Excise who accepted the contention of the appellant that the above mentioned items are not raw materials but only consumable and, therefore, assessee cannot be denied the benefit of exemption under Notification No.8/97 in respect of several raw materials (11 in number). The revenue preferred appeals before the CESTAT. By the impugned order in each case CESTAT accepted the stand of the revenue. It was held that the respondent was not entitled to the benefit of Notification No. 8/97.