1999 (7) TMI 393 - AT - Central Excise

Summary

Issues: Eligibility for exemption under Notification No. 101/66 for Surface Active Agents.

Analysis:
1. The case involved manufacturers of Surface Active Agents seeking exemption under Notification No. 101/66 for their products used in further processing into wetting out agents and emulsifiers. The central issue was the eligibility of the goods for this exemption.

2. The Revenue argued that the goods in question were only Surface Active Agents and not preparations as required by the notification. They contended that chemical test reports confirmed the products remained Surface Active Agents even after processing, thus making them ineligible for the exemption.

3. The respondents, on the other hand, relied on the specific conditions of Serial No. 4 of the notification, which allowed exemption for preparations intended for industrial processes. They argued that the manufacturing processes they conducted transformed the slurry into suitable preparations for use as wetting-out agents and emulsifiers.

4. The respondents emphasized that the slurry, in its original form, was not suitable for use on various surfaces and needed to undergo specific manufacturing processes to become end-use products. They detailed the steps involved in neutralizing the slurry and adding necessary additives to tailor it for specific industrial applications.

5. Furthermore, the respondents contended that the processes they carried out constituted manufacturing preparations, as defined in various dictionaries and supported by previous tribunal decisions. They highlighted that the products were marketed and sold as preparations for specific industries, reinforcing their eligibility for the exemption.

6. After reviewing the submissions and evidence, the Tribunal found that the respondents' processes transformed the slurry into preparations suitable for use as wetting-out agents, as covered by the exemption notification. Consequently, the appeals of the Revenue were dismissed, affirming the eligibility of the respondents for the exemption under Notification No. 101/66.