Judgment :

1. This appeal is directed against the judgment and order passed by the Customs, Excise and Service Tax Appellate Tribunal (for short 'the Tribunal'), Mumbai in Appeal No.E/158/03-Mum. dated 25.07.2003. By the impugned judgment and order, the Tribunal has partly allowed the appeal filed by the respondent-assessee, inter alia, stating that the assessee is entitled to avail the benefit of the Notification No.8/97-CE, dated 1.3.1997. It is the correctness or otherwise of the said finding and conclusion reached by the Tribunal, is the subject matter of this appeal.

2. The core issue that falls for our consideration and decision is: whether the finished goods manufactured by the 100% Export Oriented Unit ('the EOU' for short) out of the raw material supplied by another 100% EOU, and subsequently, cleared in the Domestic Tariff Area (for short "the DTA") in accordance with the EXIM Policy 1997-2002 are entitled to the benefit of the exemption provided under the Notification No.8/97-CE, dated 1.3.1997. In the alternative, whether the adjudicating authority is justified in holding that the assessee cannot take the benefit of the Notification No.8/97-CE, dated 1.3.1997 and the ass