9911796707
TMI Blog1991 (4) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... Act , for short), against the Assistant Collector s order C. No. IV/16/SRP/38/84 VC. I dated 19-7-1985. 2. The facts of the case, briefly stated, are that the appellants filed a classification list No. 13/85 on 12-2-1985 in respect inter alia of maleic resins of various grades, marketed under the brand name of Hylak Polyester Resins . It was claimed that these resins qualified for duty exemption in terms of Central Excise Notification No. 70/84 as maleic resins. In the earlier classification list of 28-4-1984, these resins were not shown as maleic resins but separately and as liable to duty in terms of Notification No. 241/82. After issue of a show cause notice and holding adjudication proceedings, the Assistant Collector extended the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maleic resins. Shri Shankar also made it clear that he had no quarrel with the result of the Chemical test which showed that the sample was a colourless liquid, composed of synthetic resin (polyester type) in volatile organic solvent. The composition of the goods as declared to the department showed - 17.50% - Maleic anhydride 17.50% - Phthalic anhydride Propylene glycol 25.13%(Polyhydric alcohol) - Styrene monomer 33.04% - (Aromatic hydrocarbon) 6.83% - Others 5. Before we proceed further, it is necessary to set out the relative entry and the definition of the term maleic resins in the said notification. It reads thus : - Alkyd resins and maleic resins including fumeric resins whether or not modified (but exclud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kataraman Iyer v. Collector of Customs, Madras -1986 (23) E.L.T. 471 (Tribunal) (para 10); (c) Collector of Central Excise Customs, Pune v. General Pharmaceutical Pvt. Ltd., Pune -1986 (26) E.L.T. 1050 (Tribunal) (para 6); and (d) Collector of Central Excise, New Delhi v. Shalaks Chemicals -1990 (30) ECR 115 (para 10). 7. On the merits of the dispute, it was submitted by Shri Shankar that in the products under consideration, maleic anhydride, polyhydric alcohol and unsaturated hydro-carbon (styrene) were present. What was objected to by the department was the presence of phthalic anhydride. The ground agitated before the Collector (Appeals) was that the presence of phthalic acid rendered maleic resin ineligible to be considered as c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) E.L.T. 379. 9. Shri L. Narasimhamurthy, DR, submitted in his reply that the impugned order was not correct for the reasons set out in the Section 35E(4) application. Collector (Appeals) had not dealt with all the grounds put forward. On the technical points put forth by Shri Shankar, Shri Murthy submitted that they would have to be gone into by the Chemical Examiner again and this could be done on a de novo consideration of the matter. 10. We have carefully considered the submissions before us and perused the record. As already noted, the composition of the product, as also its classification under Item No. 15A(1), CET, are not in dispute. Nor is phthalic anhydride, as we have seen, a resin, it is a well-defined chemical. Its major us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Potnis and Dr. Mukherjee. Instead of following this course, the department has merely sought to impugn the credibility of these experts by pointing to the similarity of the words used in their affidavits, This, by itself, in our opinion, will not do especially since the affidavits are of highly qualified experts engaged in reputable public institutions of higher academic learning. These affidavits state that resins based on only maleic acid/anhydrides and polyhydric alcohol have got problems of gelation due to high unsaturation and low solubility in monomer styrene and hence need suitable modification with aromatic acids like phthalic, isophthalic and sometimes, aliphatic acids like adipic etc. The chemical modification of maleic resins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the group of alkyd resins . The Revenue s contention that the subject goods are polyester resins and, therefore, not entitled to the exemption for maleic resins is not tenable. That alkyd resins include maleic resins is evident from sub-heading No. 3907.50 ( Alkyd resins including maleic resins and fumeric resins ) of the Schedule to the Central Excise Tariff Act, 1985. The question then boils down to whether the subject resins are maleic resins . On this question we have the expert evidence (in the shape of affidavits) of Dr. Potnis and Dr. Mukherjee to the effect that the synthetic resins prefixed by the grade reference HSR , manufactured by the appellants, are nothing but chemically modified maleic resins. The Chemical Examiner o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
