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TMI Blog1994 (11) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... henol formaldehyde resin appearing at S. No. 1 of the Schedule appended to Notification No. 190/82-C.E., dated 3-6-1982 and Notification No. 241/82-C.E., dated 1-11-1982, and attracting Central Excise duty at the concessional rate of 15% ad valorem. The Collector of Central Excise, Bombay-III, reviewed the said order passed by the Assistant Collector of Central Excise, Thane, and came to a finding that the rosin modified formaldehyde resin was not phenol formaldehyde. An appeal was, therefore, filed before the Collector of Central Excise (Appeals), Bombay, and the Collector of Central Excise (Appeals), Bombay decided that the product rosin modified formaldehyde resin could not be eligible for concessional rate of duty under exemption Notification No. 190/82-C.E., dated 3-6-1982 and Notification No. 241/82-C.E., dated 1-11-1982. 3.The matter was posted for hearing on 31-8-1994 when Shri R.K. Habbu, Advocate, appeared for the appellants. Shri Sharad Bhansali, SDR, represented the respondent. 4. Shri R.K. Habbu, the learned Advocate explained the facts of the case and submitted that as held by the Assistant Collector of Central Excise, Thane, the goods produced by them were cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehyde; has good strength xxx and chemical resistance and low cast; used as a moulding material for mechanical and electrical parts. Originally known as Bakelite. `Industrial Plastics by Ronald J. Baird/David T. Baird-1982 edition describes `Phenol Formaldehyde Resin as under :- The Phenol formaldehyde resins, more commonly known as phenolics, are produced from the reaction of phenol (carbolic acid) with formaldehyde in the presence of a catalyst. The resulting polymer can be obtained as a liquid for casting, bonding, coating, and impregnating, or as moulding compounds as powders or flakes. Phenolic moulding compounds are available only in dark colours while casting and impregnating resins can be obtained in relatively clear solutions. The product in question has also been discussed by the Tribunal in the case of Collector of Central Excise, Ahmedabad v. Jay Enterprises and Others, reported at 1987 (29) E.L.T. 288 (Tribunal). 9. The raw materials used in the manufacture of `Hindol were said to be Para Formaldehyde, bisphenol (Phenol) resins etc. The Chemical Examiner has opined that the goods were a blend of estergum and modified phenolic resins and that they may be co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NOL-FORMALDEHYDE RESIN - The first synthetic thermosetting polymer, the reaction product of phenol with aqueous 37-50% formaldehyde at 50-100oC, with basic catalyst; discovered by Baekeland (q.v.) in 1907 and trademarked Bakelite" in 1911. Polymerization is of the condensation type, proceeding through three stages. With an acid catalyst novolak resins (q.v.) are produced, which are thermoplastic." PHENOLIC RESIN - Any of several types of synthetic thermosetting resin obtained by the condensation of phenol or substituted phenols with aldehydes such as formaldehyde, acetadehyde, and furfural. Phenol-formaldehyde resins (q.v.) are typical and constitute the chief class of phenolics. ROSIN : CH COOH, and having a phenanthrene nucleus. Derivation : From pine trees, chiefly Pinus caribaea. (a) Gum rosin is the residue obtained after the distillation of turpentine oil from the oleresin tapped from living trees. (b) Wood rosin is obtained by extracting pine stumps with naphtha and distilling off the volatile fraction. (c) Tall oil rosin is a by-product of the fractionation of tall oil (q.v.). ESTER GUM - Hard, semisynthetic resin produced by esterification of natural resins (espec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts for the period covered by the above two notifications. 21. However, in respect of the period covered by the Notification No. 122/71 since the expression Phenolic resins has been defined and included for the purposes of that notification we are not concerned with either technical literature or commercial parlance and have to strictly go by the definition indicated therein. This definition is as follows :- The expression `phenolic resins means synthetic resins manufactured by reacting any of the phenols with an aldehyde and includes chemically modified phenolic resins and liquid phenolic resins but does not include blends of the phenolic resins with other artificial or synthetic resins. 22. Therefore, during the period which was covered by Notification No. 122/71 the word Phenolic resin would include modified phenolic resins also but it would not include blends of phenolic resins with other artificial or synthetic resins and as we have seen above the Chemist had opined that the product was a blend of estergums and other phenolic resins and estergum is a synthetic resin. 23. It is significant that the definition mentioned in Notification No. 122/71 has not been incorpora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture and the trade parlance. The ld. Collector noting specifically the report of the Chemical Examiner, which reads :- Rosin modified phenolic resins has held that the product is not `Phenol-Formaldehyde Resin and that the notification has to be strictly construed and on such construction, the exemption under the amended Notification No. 241/82-C.E., dated 1-10-1982 is not available. 29. Contesting this finding, it has been pleaded by the appellants that the Collector had not granted the personal hearing and thus there is a violation of principles of natural justice. It is also pleaded that the Assistant Collector had come to the conclusion that their product is a Phenol-Formaldehyde Resin on the basis of Experts evidence in the form of technical/literature, authoritative books and certificates and a manner in which it is understood in the trade. It is also their plea that the Assistant Collector s order is based on the Dy. Chief Chemist s report which is in their favour. The Dy. Chief Chemist s reports states that the samples are :- synthetic resins and as resin and glycorins can react to estergum phenol and formaldehyde to form phenolic resin. The Dy. Chie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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