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TMI Blog1988 (2) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the usual procedure, held the goods in question as classifiable under Tariff Item 14I(l)(ii) of Central Excise Tariff and rejected their declaration dated 1-12-1984 claiming re-classification under Tariff Item 15A(1). The order was upheld in appeal by the Collector of Central Excise (Appeals), Bombay by his order, dated 23-6-1986. Hence this appeal to the Tribunal. 3. Before the Tribunal, the appellants presented an application for an out of turn hearing urging that the issue involved in their appeal was identical to those in Appeal Nos. 2135/83-C and 2126/86-C, parties M/s. Plastic Colour Corporation v. Collector of Central Excise, Ahmedabad. At the hearing, however, it was noticed that the issues involved in the present appeal were somewhat different from those in appeals by M/s. Plastic Colour Corporation. Hearing of this appeal was therefore, delinked with the hearing of appeals by M/s. Plastic Colour Corporation and the appeal separately heard. 4. It may be stated that at the hearing, Smt. J.K. Chander, Departmental Representative for the respondent, drew attention of the Bench to a decision of the Tribunal in M/s. National Organic Industries v. Collector of Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctured description of Tariff Item 15A took in its ambit not only artificial or synthetic resins and plastic materials but other materials also. Though other materials might not be falling within the description of plastic materials, such other materials are to be treated as plastic materials when such materials are used in plastic or plastic articles. Drawing attention to the use of the word materials in explanation 3rd in the restructured Tariff Item 15A, he emphasised that the explanation did not speak about plastic materials. The apparent intention according to him is that if other materials were used in the production of articles or articles of plastics, such other materials are to be classified under Tariff Item 15A(1) even though the other materials may not on merits be classifiable under Tariff Item 15A(1). He enumerated other materials which could find use in plastics as being - Plasticizers1. Stabilizers2. Lubricants3. Modifiers4. Fillers5. Colorants6. Antistatic agents7. Tackifiers8. Antiblocking agents9. Foaming agents10. Flame retardants11. Fungicides12. Odarants13. According to him by deeming fiction such other materials e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such a change as to take out master batches from out of 68. This, she submitted while still maintaining that proper classification would be only under Item 14 as pigments and colours. 9. Smt. Chander also submitted that even assuming that master batches as urged by the appellants, fell under Tariff Item 15A(1) would not make it exempt from duty in absence of an exemption notification to that effect. She submitted that old concept of their being no duty liability on the newly emerging goods, falling under the same sub-item or item had been exploded and so far as the Tribunal is concerned, set at rest by the very recent Five Member Bench decision in M/s. Guardian Plasticote Ltd., Calcutta v. Collector of Central Excise, Calcutta and Others - [1986 (24) E.L.T. 542 (Tribunal)]. 10. At the close of the hearing, the Bench felt that for proper appreciation, the cost material and the output material as also the use to which the goods in question are put to, should be examined. The appellants were, therefore, called upon to submit papers on these points. The appellants with their communication dated 30-6-1987, filed a list of five manufacturers who purchase LDPE master batches from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore us, it is not considered necessary or prudent to refer to all of them or to reproduce them. It is sufficient to refer to The Condensed Chemical Dictionary, Tenth Edition by Gessner G. Howley. The Dictionary has to say as under - A previously prepared mixture comprised of a base material and a high percentage of an ingredient (usually a dry powder) that is critical to the product being manufactured Aliquet parts of this mixture are added to production-wise quantities (batches) during the mixing operation. This method permits uniform dispersion of very small amounts (less than 1%) of such additives as dry curing agents in rubber and colorants in plastics and paints. Modifying elements may be incorporated in alloys in this way. Master-batches of organic dyes dispersed in rubber or plastic are prepared by manufacturers of colorants for direct use. Master batch accelerators (mixtures of rubber, zink, oxide and accelerator) are commonly used in rubber mixes. In Modern Plastics Encylopaedia, Color Concentrates by B.F. Faulks, has to say as under - To ensure that the concentrate disperses readily and evenly in the processor s resin system, a resin carrier that is compatible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parlance criterion. The Revenue have cited the Supreme court judgment in the case of Atul Glass Works - 1986 (25) E.L.T. 473 (S.C.) = 1986 (8) ECR 513 (S.C.), in support of the plea that the PVC master batches are not known as PVC compounds and that character of the product has changed by addition of the pigment for showing that the product does not fall under 15A(l)(ii). It is seen that the product master batches formed with the dispersion of pigment in PVC has neither remained as pigment as known in the trade no PVC. The definition of the pigment as stated by the Revenue also does not help them. In the master batches the PVC cannot be considered merely as a vehicle for the pigment. After mixing with PVC compound, PVC in the master batches becomes a part of the ultimate product manufactured out of the compound. It is not like pigments ordinarily sold in suspension form where on application the carrier evaporates and has no other role to play. In the instant case, the PVC in the master batches not only acts as a carried, as pointed out, but it becomes part and parcel of the product which is manufactured out of PVC compounds. Therefore the analogy with the pigment in the suspen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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