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TMI Blog2003 (5) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner (Appeals) vide his impugned order has held that since the CNSL has a short shelf life of only 24 hrs. and the same cannot be marketed in that condition in which it comes into the existence in the appellants factory, the same is not a marketable product and hence, not excisable. For the above finding Commissioner (Appeals) had relied upon the Supreme Court s decision in the case of Moti Laminates Pvt. Ltd. v. Collector of Central Excise, Ahmedabad - 1995 (76) E.L.T. 241 (S.C.) and also on the Board s Circular No. 464/30/99-CX., dated 30-6-1999. For better appreciation we are reproducing the relevant paragraphs from the Commissioner (Appeals) Order. Cashew Nut Shell Liquid is naturally occurring liquid obtained from spongy layer bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resin known as Resinoid would not have the same properties as it was having at 80 to 90 C. Further heating it to 80 to 90 C again, the product would not possess the same characteristics as it was having initially. This is thermosetting resin as against that of thermoplastic resin, wherein, product after heating to particular temperature and when again cooled down and then subjected to reheating would carry the same properties. Mc Graw - Hill Dictionary of Scientific and technical term Fifty Edition, Page No. 2019 defines thermosetting resins thermoplastic resin. The definition of the former is a plastic that solidifies when first heated under pressure and which cannot be remelted or remoulded without destroying its original characterist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 3 months to observe that it was a sticky mass containing phenolic resin. That it is a phenolic resin is not disputed by the appellant. Besides, they also agree that after the passage of time the product that is heated when allowed to cool would turn into a sticky mass. Not only this they also agree that CNSL, as such can be used for the purpose of obtaining a certain degree of viscosity for the manufacture of brake lining. The question however, is how much time the naturally occurring CNSL would take as batch to batch the viscosity of the naturally occurring CNSL changes. To get the standard viscosity and to overcome this hindrance, natural CNSL is therefore subjected to heating with hexamine (which is a tetramine and not a aldehyde) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y consumed are not chargeable to excise duty owing to their short shelf life provided that they are not marketed or sold commercially as such. 4. Against the above findings of the Commissioner (Appeals), the Revenue in the memo of appeal have contended that since the standardised CNSL of desired level of viscosity become suitable for use in the factory for manufacture of Brake Liners/Clutch Facings, the same is an excisable product; that the Board s Circular is to the effect that intermediate products viz. binders/resins/glues which are captively consumed are not chargeable to duty owing to their short shelf life. In the instant case the product is stored in a heated storage tank at 75 C to 90 C and withdrawn for use as and when required ..... X X X X Extracts X X X X X X X X Extracts X X X X
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