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TMI Blog1984 (4) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... as artificial or synthetic resin plastic material and was not classifiable under sub-item (1) of item 15A of the Central Excise Tariff. However when Item 15A for the Central Excise Tariff was recast in accordance with the Finance Bill 1982. The Central Excise considered that the poly-acrylonitrile was a high polymer and would therefore fall under sub-item (1) of Item 15A in view of the amendment. A notice was issued calling upon I.P.C.L. to show cause why the poly-acrylonitrile used in the manufacture of acrylic fibre should not be classifiable under sub-item (1) under Item 15A and duty divided at an appropriate rate i.e. 40% adv. This notice was issued on: 18-6-1982. 3. After hearing the party and taking into account its written submission, the Asstt. Collector came to the conclusion that the product was classifiable as other high polymers which appears in the recast Item 15A(1) and that therefore it would be assessable under that item, although he had also come to the conclusion that it was not an artificial plastic or an artificial resin nor a silicone or a resol. The discussions of the Asstt. Collector centred only on establishing that although the poly-acrylonitrile powder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... logy. 7. They referred to Fundamentals of polymer processing by S.S. Middleman (McGrowhill, New York, 1977) which defines it as a process by which a molten polymer is conveyed at specified temperature, pressure, and flow rate to a die, through which it is forced in either a continuous or discontinuous form. Encyclopaedia of Polymer Science and Technology -John Wiley and Sons, New York, Vol. 8 says that basically extrusion is a process by which a material is forced to flow in a more or less continuous manner through a forming die which is shaped to produce the required cross-section. Inherent in the extrusion process is the softening by heat or solvents of the material being formed so that it can readily be conveyed and formed without destroying the desirable final properties of materials . A concise Guide to Plastics -H.R. Simonds and J.M. Church, Remhold Book Corpn., 2nd Edition tells us that extrusion is limited to thermoplastic materials and to continuous forms such as filaments, rods, tubings, film, sheeting, wire coating and various profile shapes . 8. From this it is seen that extrusion is a process generally applied to thermoplastics which are softened by h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dissolved state. Only when the concentration of polymer in solvent is greater than 60% by weight will the solvent begin to act distinctly as a plasticizer. For this he quotes; Physics of Plastics -P.D. Ritchie, Iliffe Books Ltd., London and Polymeric Materials by C.C. Winding and G.D. Mistt Mcgrawhill, New York . 11. The I.P.C.L. also quoted certain judgements like the judgment of the Delhi High Court in the Indian Plastics and Chemicals v. Union of India - 1981 E.L.T. 108 (Delhi) in which the court held that the resins under Item 15A refer to the resins as fully manufactured and not to any solution of resins and secondly that the weight of the solvent should not exceed 50% of the weight of the solution. (This decision however related to an aqueous solution of phenolic resins. The court held that this was not the manufactured resin and was only an intermediate product in the production of finished phenolic resin. The court held that the aqueous solution does not mean that the product had reached the stage of completion. This decision therefore is not applicable to the matter before us). 12. Certificates were also produced from Sri Ram Test House, Sardar Patel University ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product as high polymer falling under 15A(1). The learned Counsel for the department conceded that the show cause notice was not the happiest notice but the charges it sets out can still be argued on these bases. 15. The appellant desires the case to be assessed under Tariff Item 68 but this item can only cover cases which do not fall under any of the proceeded item. She referred to the Supreme Court s decision in Dunlop India Ltd. and Madras Rubber Factory Ltd. v. Union of India, AIR 1977 S.C. 597 = 1983 E.L.T. 1566 (S.C.) at 1567 drawing special attention to the court s rule that once an article is classified and put up in a distinct entry, the basis of classification is not open to question. It would not be proper to place the subject goods in the orphanage of Tariff Item 68 when its parentage can be discerned. 16. She also referred to the definition of the word Plastics in the book Modern Plastic Technology by R.B. Seymour which defines plastics as any kind of matter that flows as the result of application of heat and or pressure. The American Society for Testing Materials has defined plastics as materials that contain as a special ingredients organic substances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L.I. Nass defines plasticizers as a substance of material incorporated in plastics or elestomer to increase its flexibility, workability or distensibility. Plasticizers may reduce melt viscosity. I.P.C.L. argues that it is clear from this that a solvent should have similar criteria if it is to act as a plasticizer. The appellant states that it is known that solvents like aromatic hydrocarbons chlorinated parafins and hydrogenated terphenyles are used as processing aids in the shaping of plastics. 20. What the learned Counsel for I.P.C.L., however, overlooks is that the role of a plasticizer has only one definite aim, and that is to aid in the forming/shaping/fabrication of the resins. Some resins like PVC and cellulose esters are somewhat brittle and require parametric modification of state to allow proper working. Others has too low extensibility to be useful as plastics. They require plasticization to increase flexibility or to decrease brittleness at room temperature or below. The book Polymeric Materials by Charles Winding and Gordon D. Hyatt has this to say about solvent plasticization : In the solvent type of plasticization powerful solvents of low volatility are employe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, polymer . 23. A plasticizer is also known as a flexibilizer and to plasticize always means to soften a material to make it plastic or mouldable by addition of a plasticizer or by using heat or both. 24. The learned Counsel for M/s. I.P.C.L. argued that their product had not received a plasticizer and there is no plasticizer at the time of forming the acrylic fibre. The absence of plasticizer would prove that the product was not plastic and was not formed under the influence of a plasticizer. The argument suffers from a serious defect because as we know that many plastics require plasticizers; there are many others which do not. The role of a plasticizer is merely to aid in the moulding of the matter, because the matter to be shaped or fabricated lacks certain desirable characteristics like extendibility, mouldability etc. etc. It is to be remembered that plasticization involves reducing the hardness of the substance to a state where it can be moulded, shaped, fabricated without breaking, a state in which it can be given a desired shape or form which shape or form will be retained after the fabrication process is over with or without any further process of fixing the new sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an acrylic fibre. The mass of the solute the acrylonitrile powder, holds together as polymerized article when it is formed into fibre; the aggregate holds, together, each particle sticking to its neighbours to form a continuous length of fibre. 26. This quality exhibited by the acrylonitrile powder is exhibited by all plastic substances many of which are not resin; for example, clay and putty are plastic and can be formed under pressure. Most metals have plasticity and can be formed, drawn, shaped or cast under heat and pressure in any manner desired. Even glass, that amorphous, non-crystalline substance, shows plasticity as it permits formation under heat and external pressure. Nobody who has seen a glassware manufacturing factory can fail to be struck by the plastic qualities of the molten glass in the hands of the skilled glass blower, who shapes the parison in any manner he chooses giving shape to a shapeless mass. Metals like aluminium and copper are shaped by extrusion into rods, tubes and other shapes. This is possible because of their plasticity. But a substance like earth, powdered wood, cannot be formed in this manner because the particles will not hold together but w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from a polymer dissolved or reduced to a solution in a solvent, through spinnerets, the extruder. 30. It is not possible to describe all the different products that are produced from solutions. But whether it is a solution (PAN in nitric acid) or a melt, the aim is one : to reduce the viscosity in order to increase flow. This phenomenon is essential to all plastic forming. Unless the material to be formed can be made to flow by the application of heat or force or both, plastic forming is not possible. Artificial resins are formed by the application of heat and/or pressure/force, both to bring about flow and to achieve the desired shape/form. All resin plastic materials, after they have thus been induced to take the new form/shape etc., retain it and do not reform. [Technologically, this is said to be lack of memory]. It is easy to conceive this when an attempt is made to bend a piece of plastic outside the conditions in which it can be shaped, as by bending it cold. The piece will bend to its stress recovery point; if stress is removed, it will return to its original shape/ line. If stress is applied beyond the recovery point it will simply break. On no account will it accept t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lc, fuller s earth and Bentonite are added to stabilize the suspension and prevent polymer globules from adhering to each other. Normally, the initiator is soluble in the monomer. Each monomer globule polymerizes as a spherical pearl of high molecular weight. The heat of polymerization is removed by the water, permitting accurate temperature control. The stabilizer must be separated from the polymer, however, and sometimes, because of partial miscibility of monomer and water, subsidiary polymerization may occur in the aqueous phase, producing a low-molecular weight polymer. Emulsion polymerization differs from suspension polymerization. Soap is added to stabilize the monomer droplets and form aggregates called micelles. The micelles take monomer into their interior and the initiator dissolved in the aqueous phase diffuse into the micelle to start polymer growth. At certain degrees of polymerization, the polymer is ejected from the micelle but continues to grow. The monomer diffuses into the micelle to replenish it. Emulsions polymerization are rapid and can be carried out at relatively low temperature. The aqueous phase absorbs the heat evolved from the polymerization. 32. We ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of uniform cohesive material of an approximately circular cross-section. All other fibres like polyester, cellulose acetate, nylon etc. etc. have the same characteristics of plasticity and it is this that enables them to be spun and drawn into fibres. All these materials are plastic materials and all the books of science and technology recognise them to be plastic articles. Acrylic fibres are extensively dealt with and discussed in books on plastics and plastic technology and we are unable to understand why, inspite of overwhelming evidence, M/s. I.P.C.L. still claims that polyacrylonitrile powder is not plastic in nature. 34. It is claimed by M/s. I.P.C.L. during the arguments that the argument of the department by which it tried to show that the polyacrylonitrile powder was a plastic material was a new case and a new case was impermissible according to various decisions quoted by the appellants. The appellants says that the Assistant Collector himself has held that the product was not a plastic product, and therefore, the department cannot now reverse itself to demonstrate plasticity of its product. But we think that there is really no new case; the appellants themselves argue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter has been discussed threadbare.] In support of this, M/s. I.P.C.L. also quoted 1980 E.L.T. 268 (Bombay) Colgate Palmolive India Ltd. v. Union of India and Deputy Commissioner of Agricultural Income Tax and Sales Tax, Quilon v. Travancore Rubber Tea Co. 20 STC 520 and the Bombay High Court judgment in Sangvi Non-ferrous Metal Industries v. Union of India, 1979 E.L.T. J 543. All these judgments settled that the onus that a product is chargeable to duty in a particular manner lies squarely on the department. These are good and sound rulings and we all accept them. 38. M/s. I.P.C.L. also says that it is established that no new case which has not been known to the petitioner at the time of show cause notice can be made out in subsequent proceedings Xaca (India) Pvt. Ltd. v. Union of India - Misc. Petition No. 860 of 1973 decided on 26-6-1979-1980 E.L.T. 227 (Bombay). We have discussed that the assessment under 15A(1) which we are deciding in favour of now, is directly the result of M/s. I.P.C.L. s contention, which we also think is correct, that the polyacrylonitrile powder is a polymerization product and is a product of the combination of two or three monomers. The nature o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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