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TMI Blog1996 (3) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... amide and lignosulphonate in the form of powder, similar to amigen in composition. 3. The appellants have filed a Writ petition being No. 3136 of 1991 in the Bombay High Court against the Tribunal s stay order No. 163/91-C under which the Tribunal had directed the appellants to pre-deposit a sum of Rs. 20 lakhs out of the demand of Rs. 29,48,385.72, on or before 21st October, 1991. The Hon ble Bombay High Court did not interfere in the matter, but extended the time for compliance of the Tribunal s order. Before the Tribunal in the stay proceedings, the appellants had relied upon some earlier order of the Assistant Collector of Central Excise, Thane, in other proceedings. The Tribunal had observed in its stay order that the order of the Assistant Collector of Central Excise, Thane, relied upon by the appellants, had been passed without reference to the product literature and also without testing the product for its chemical composition and properties, and that the said order had left open the issue regarding the benefit of Notification No. 208/69-C.E., dated 27-8-1969. At one stage, the appeal had been dismissed by the Tribunal for default vide final Order No. 52/1995-C, dated 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... honate, sodium bisulphite and ammonia 20% and thereafter further processing with the addition of other inputs to give the commercial product. 2. Into a reaction kettle containing prescribed quantity of water, under controlled condition of temperature, first lignosulphonate is charged very gradually with stirring, followed by formalin, followed by dicyandiamide and sodium bisulphite slurry. The additions extend over 5 to 5.1/2 hours. 3. The temperature of the contents of the kettle is raised by heating and at the end of the heating the pH is 7-7.5. The process continues under controlled conditions of temperature and pressure, at the end whereof the temperature is lowered and pressure released. The heating and cooling cycle takes 4 hours (pH 7-7.5). 4. The unreacted formalin is destroyed by adding ammonia 20% and the pH of the solution of the condensed product is stabilized at 9.6 to 9.8 and spray dried and thereafter is further and finally processed involving the addition of lignosulphonate, inorganic filler and soda ash in a particular sequence and subjected to blending for an hour and finally packed. The appellants have stated that the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al devices, dinnerware, etc. Amino resins are of different types and are mainly used as adhesives for bonding and laminating; in molding compounds; paper treating and coatings; protective surface coatings; and textile finishes (page 92 of the Encyclopaedia). In the same Exhibit Q, they have stated as under : Thus, the product Vernatan R-7 by itself is not resin but gets converted to the resin during its application to leather. Also, on resinification on the leather, the inorganic filler gets incorporated into the leather to improve its character. 8. On Chemical Test vide F. No. 21/85, dated 4-1-1985 at enclosure 11 of appellants Misc. Application No. E/Misc./711/91-C - the sample drawn on 17-8-1984 (127/84) and report received on 3-12-1984, the product was found to be a condensation product of amide and formaldehyde along with small amount of lignosulphonates, similar to Amigen. It was in the form of a light brown powder. Earlier the goods had been tested by the Deputy Chief Chemist and the sample was drawn on 23-9-1983. The report of the same reads as under : Sample is condensation product of formaldehyde and amide and lignosulphonate in the form of powder. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or alcohols. The materials used for tanning usually are of low molecular weight, the degree of polymerization being from 2-3, and are water soluble. The reactivity of the N-methylol types is greater than that of the N-alkoxymethyl types, out of latter are more stable to handling.The low molecular weight materials are incorporated into the leather by drumming.Then the pH is dropped and, under said catalysis, both self-condensation and reaction with amino and hydroxyl groups of the protein can occur. A review of some tanning procedures has been given (57) and includes discussion of tannage with styrene-maleic anhydride copolymer, tannage with isocyanetes and tannage with furfuryl alcohol, which is condensed in situ within the hides by acid catalysis. As yet, none of these is of significant commercial importance. Acrylic resin synrans containing multiple carboxylic acid groups have gained increased commercial attention (58-59). Such polycarboxylic acid polymers can be expected to increase fixation of mineral tannages (40-41) and can eliminate the possible. 11. The appellants had claimed the classification of their product Vernatan R-7 under Item No. 15-AA of the old Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the concentration of the surfactant solute in the bulk of the solution exceeds a limiting value, the so called critical mucelle concentration (CMC) which is a fundamental characteristic of each solute solvent system. It is thus clear that the basic characteristic of surface-active agent is its capability of cleaning, performing cleaning chore . We have described the product in question in somewhat detail on the basis of the information supplied by the appellants themselves.We consider that on no account the product in question could be classified under item No. 15-AA of the Tariff as Organic Surface-Active Agent or Surface-Active Preparation . 13. Chandigarh Collectorate Trade Notice No. 143/81, dated 26-9-1981 at page T-199 of 1981 (7) E.L.T. related to the product Synthetic Tanning Agents and as per tariff advice classification was to be decided on the results of chemical analysis, use of goods, trade parlance etc. Tariff Advice No. 20/82, dated 21-4-1982 (page T-80 - 1982 (9) E.L.T.), referred to functional properties as detergency, foaming, welting, emulsifying, solubilising, dispersing. They are not satisfied in the present case. 14. The Assistant Collector o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrome fixation, olation and exolation occur. Consequently, after transfer to a drum, the stock is neutralised to a desired pH. frequently is retanned to develop certain properties for different end uses and then is dyed and faliquored in rapid succession in the same drum. Fatliquoring is the application of oil-in-water emulsions to the leather. Once all of the wet operations have been completed, the leather can be dried, which not only involves removal of excess water, bringing the moisture content close to that of the finished leather, but completes the reactions of some of the materials (e.g. tanning agents, fatliquors and dyes) with which the hide has been treated (see Drying). It is the finishing process with its application of natural or synthetic polymers and of colorants within and on the surface of the leather that produces the uniformity, appearance characteristics and resistance to scuffing and abrasion that are required for a commercial product. Costings for leather function as decoration and protection. In the book of Glossary of Chemical Terms, the term Resin has been described as under (as quoted in the Collector of Central Excise, Ahmedabad v. Jay Enterprise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roducts are classified into two main groups on the basis of a comparison of the structure of the repeating unit of the polymer with the structure of the monomer from which the polymer is derived. The two general divisions are addition polymerization and condensation polymerization. We can see that this authoritative work regards polymerization as nothing but addition and condensation, including polyaddition and polycondensation. In this light, both sub-item (i) and (ii) really refer to the same kind of materials; these two sub-items merely list different plastics by name or nature or structure : they are not meant to be exclusive lists of processes; that is neither necessary nor practicable. 18. Viewed in this light, we find no infirmity in the order passed by the Assistant Collector of Central Excise, Panvel, as confirmed by the Collector of Central Excise (Appeals), Bombay, wherein the product in question had been classified under Item No. 15A(1) of the Central Excise Tariff. 19. Notification No. 208/69-C.E., dated 27-8-1969 provided exemption to Organic Surface-Active Agent (other than soap) and Surface-Active Preparations, whether or not containing soap, if they satisfy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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