1997 (12) TMI 207

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..... , Member (T)]. This appeal is directed against the order dated 17-6-1988 passed by the Commissioner of Central Excise, Mumbai-III. The facts briefly are that the appellants herein applied for exemption under Notification 35/73 for obtaining Mixed Xylene from supplier IPCL at concessional rate. This notification exempted materials including Xylene from duty on condition inter alia that the ju .....

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..... pellants on 7-8-1982 that Mixed Xylene received under the concessional rate has been sent to their Andheri factory and that the products Sigma Stove Thinner did not contain any ingredients other than Mixed Xylene itself. The Mixed Xylene was transferred from the tanks to the drums without adding any ingredients and the same was called Sigma Stove Thinner and was shown as produced in the batch card .....

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..... Phadnis, the ld. Counsel for the appellant submitted that the appellant s case is covered by the decision in the case of Shalimar Paints v. Commissioner - 1997 (95) E.L.T. 555 where the Tribunal has held that the concessional rate of duty under the Notification 75/84 will be available to thinner because the thinner is an allied material to the output goods mentioned therein. The ld. Counsel submi .....

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..... ner within the factory of the appellant therein. 4. We have carefully considered the submissions made by both sides. The notification states that where the notification grants concessional rate of duty for the petroleum products stated therein which includes Mixed Xylene on condition that the Asstt. Collector is satisfied that it is intend for use in the manufacture of paints, varnishes, lacquer .....

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..... ts themselves have admitted that no process was undertaken on the Mixed Xylene sent to their Andheri factory. In such a situation the appellant s case differs from the case law cited on the facts and for that quantity which they have sent to their Andheri factory, the fundamental requirement of the Notification namely use in the manufacture of materials mentioned therein was not satisfied as has b .....

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