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Issues:
1. Interpretation of exemption Notification No. 121/62 regarding coal tar and coal tar pitch. 2. Whether coal tar pitch falls under Tariff Item 11 and is covered by the exemption. Analysis: The case involved an appeal against the Collector of Customs (Appeals) who rejected the appellants' plea for the benefit of exemption Notification No. 121/62 in relation to imported coal tar and coal tar pitch. The dispute centered around whether coal tar pitch is covered under Tariff Item 11 and the term "Tar" as specified in the said notification. The lower authorities distinguished between tar and coal tar pitch based on their compositions, uses, and characteristics. The appellants argued that coal tar pitch falls under the Tar Group of Products as per CET Item 11(2) and cited instances where similar products were exempt from duty. The Department Representative emphasized the distinction between tar and coal tar pitch, presenting definitions from standard references to support their position. The Department Representative highlighted that tar is a viscous material obtained from destructive distillation of organic material, while coal tar pitch is the residue after partial evaporation or fractional distillation of coal tar. They also provided definitions from industrial technology references, illustrating the complexity and composition of coal tar. The Tribunal noted that coal tar and pitch are distinct entities, with coal tar being the precursor to pitch. The appellants' reference to a similar product benefiting from exemption at Bhilai Steel Plant was deemed irrelevant to the current case. Consequently, the Tribunal held that coal tar and coal tar pitch are separate commodities, and the exemption applicable to coal tar does not extend to coal tar pitch. As a result, the appellants' claim was dismissed, affirming the denial of the exemption benefit for imported coal tar pitch.
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