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TMI Blog1991 (3) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... se Tariff Schedule ( CET , for short) with the benefit of duty-free captive consumption in terms of Central Excise Notification No. 118/75 dated 30-4-1975. On the basis of investigations, the department took the view that the goods were correctly classifiable under Item No. 14-1(5) CET ( Paints and enamels, not otherwise specified ) and that the appellants had mis-declared the goods in the classification lists filed from time to time with a view to evade the duty payable thereon. Following a show cause notice dated 21-4-1986, covering the period from 1-1-1981 to 28-12-1985, and adjudication proceedings, the Collector of Central Excise, Pune, confirmed the demand for duty for the period of 6 months preceding the date of the show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts. He submitted that this was fallacious logic. The matter was not so simple. In this connection, our attention was drawn to Page 449 of the book Chemical Process Industry by Shreve, published by Mcgrow Hill Kogakusha Ltd., under the heading Lacquers , it is stated that cellulose lacquer is a liquid coating composition containing as the basic film forming ingredients cellulose esters, or ethers and plasticizers, with or without resins. By virtue of the evaporation of the solvent, they fall into the class called non-convertible coating whereas the convertible class includes oil paints and oil varnishes where the film as initially applied dries and hardens primarily though oxidation and polymerisation reactions induced by the surrounding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ten designated as lacquers. Early Chinese and Japanese lacquers employed the sap from the varnish tree (Rhus vernicifera) as a vehicle. This is an oleoresinous material that dries by oxidation in a humid atmosphere. Pigmentation of lacquer vehicles provide what may be called lacquer enamels and these are broadly useful protective coatings. In contrast to oleoresinous type vehicles that dry by oxidative polymerization, lacquers dry by solvent evaporation. Many solvent type resins, such as the vinyls, acrylates, allyls, silicones, chlorinated rubber, non-drying alkyds, and maleic-modified ester guns, have been combined with cellulose derivatives to give coatings of improved properties. The direction of development in lacquer formulations has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted during the hearing two affidavits, one from D.K. Deshmukh, Paint Technologist and the other from Dr. M.A. Shenoy, Reader in Polymer Technology, Department of Chemical Technology, University of Bombay. Shri Deshmukh s affidavit stated that on going through the manufacturing process, the lacquers produced by the appellants could not be considered as paints, that they belonged to the lacquer family not based on cellulose or introcellulose and that lacquers as known to the trade and industry were different from paints, varnish, enamels etc. Dr. Sheno/s affidavit stated that acrylic lacquers could not be regarded as paints. They took longer to dry and the method of drying was different. Paints dry by oxidation whereas lacquers dry by solvent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dissolved material in a dry and closed film. As against the evidence produced by the appellants, the Revenue has not shown, though the onus was on it, that lacquers are known in the trade as paints. 13. Item 14 (the relevant extracts of which have been reproduced earlier) has specific sub-items for different types of paints - such as Water Paints, Oil Paints, Ready mixed paints, etc. It has also a residuary entry for paints not otherwise specified. Certain lacquers have been grouped under sub-item III under the head Cellulose Lacquers. This sub-item has been divided into two groups - (i) Nitrocellulose lacquers and nitrocellulose ancillaries and (ii) Cellulose lacquers, not otherwise specified. The main heading of Item 14 specifies cell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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