M/S. MERIDIAN INDUSTRIES LTD. versus COMMISSIONER OF CENTRAL EXCISE

M/S. MERIDIAN INDUSTRIES LTD. versus COMMISSIONER OF CENTRAL EXCISE

Wax used in manufacturing cotton yarn remains part of the yarn and imparts essential qualities for buyers, thus constituting a raw material rather than a consumable. Since product is not manufactured solely from indigenous raw material, benefit of Notification No.8/97-CE dated 01.03.1997 is not available to assessee.

Parties
Appellant: M/S. Meridian Industries Ltd.; Respondent: Commissioner of Central Excise
Jurisdiction
India
Judgment Date
27 October 2015
Procedural Posture
Civil Appeal / Final Judgment on Appeal From Customs, Excise and Service Tax Appellate Tribunal
Outcome
Appeal dismissed with costs.
Legal Topics
Exemption Notification, Interpretation of Statutes, Definition of Consumables and Raw Materials, Export Oriented Undertakings (eou)
Taxation Central Excise Exemption Notification Interpretation of Statutes Definition of Consumables and Raw Materials Export Oriented Undertakings (eou)

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Parties

M/S. Meridian Industries Ltd.

Appellant

Commissioner of Central Excise

Respondent

Procedural Posture

Civil Appeal / Final Judgment on Appeal From Customs, Excise and Service Tax Appellate Tribunal

Legal Issues

  1. 1 Whether imported wax used in manufacture of cotton yarn by EOU is 'raw material' or 'consumable' for the purpose of Notification No.8/97-CE dated 01.03.1997
  2. 2 Whether benefit of Notification No.8/97-CE dated 01.03.1997 is available if such imported wax is used

Ratio Decidendi

Wax used in manufacturing cotton yarn remains part of the yarn and imparts essential qualities for buyers, thus constituting a raw material rather than a consumable. Since product is not manufactured solely from indigenous raw material, benefit of Notification No.8/97-CE dated 01.03.1997 is not available to assessee.

Court Disposition

Appeal dismissed with costs.

Orders

  • Benefit of Notification No.8/97-CE dated 01.03.1997 not available to appellant.
  • Appeal dismissed.