9911796707
TMI Blog1985 (7) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... he manufacture of alkyd resins, classifiable under Item 15A of the Tariff and receive back in the factory of the appellant for further manufacture of paints and varnishes. A request was made in terms of Sub-Rule (7) of Rule 56A of the Central Excise Rules, 1944. This was rejected by the Assistant Collector of Central Excise, Visakhapatnam I Division, by his order No. 87/83, dated 9-1-1984. An appeal against this order was allowed by the Collector of Central Excise (Appeals), Madras who directed the. Assistant Collector to grant permission to the appellant. He noted that the manufacture of alkyd resins was a process necessary for the manufacture of paints and varnishes; sub-rule (7) does not stipulate that operations which are necessary and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be permitted indirectly. Hence he urged that refusal of the permission under Rule 56A(7) by the Assistant Collector was maintainable. 3. The Advocate for the respondent drew our attention to Trade Notice No. 119/82, dated 10-6-1982 issued by the Collector of Central Excise, Guntur in which it has been stated that credit of duty on goods falling under T.I. 68 and used in the manufacture of alkyd resins as an intermediate product for ultimate manufacture of dutiable paints in an integrated paint factory, has to be allowed, even though it may place those manufacturers who make alkyd resins only at a disadvantage. He also referred to Trade Notice No. 194/84, dated 29-12-1984 explaining the scope of any other operations occurring in Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of final excisable goods could be allowed to be done outside the factory in which raw materials have been received but the nature of such other operations has to be examined in the light of the various processes referred to in sub-rule (7) itself namely, tests, repairs, refining, reconditioning. As rightly pointed out by the S.D.R.., Trade Notice No. 194/84 as modified by No. 83/85, clearly provides that when a marketable product arises at the second factory, permission under Rule 56A(7) could hardly be considered. As already decided in the case of Coromandel Paints and Chemicals Ltd. in ED(MAS)No. 467/83 referred to supra, alkyd resin is an excisable product which continues to be exempt from payment of duty at the relevant time. If ..... X X X X Extracts X X X X X X X X Extracts X X X X
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