9911796707
TMI Blog1978 (8) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... under Tariff Item 15A, Central Excise Tariff and hence exempted from duty vide notification 156/65 dated 23 9-1965. After due consideration the Asstt. Collector of Central Excise I Division vide his order-in-original No. D.R. Misc. No. V/15A/3/7/67-68-T2 dated 16-8-1968 decided that the impugned goods were modified alkyd resins and hence were not covered by the exemption notification 156/65 dated 23-9-1965 which covers alkyd resins. When the party went in appeal, the Appellate Collector of Central Excise, Madras vide his order-in-appeal No. 789/72/C. No. V/15A/2/13/72 dated 10-9-1975 allowed the appeal on the ground that as "alkyds resin" includes modified alkyd resin also the products in question were eligible for exemption under notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nity for personal hearing was given to the party by the Government of India in Madras. During the personal hearing both legal and technical arguments were advanced by the Advocate who appeared on behalf of the party. At the outset it was pointed out that in the show cause notice for review a different stand was taken by the Government which was at variance with the stand taken all along by the Department. At the lower level duty was demanded by the Dept. as the impugned products, being modified alkyd resins, were not covered by the exemption Notification 156/65 dated 23-9-1965. The Appellate Collector reversed the decision are also covered by the scope of Notification 156/65. On the other hand in the show cause notice for review the Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vanced by the party based on the process of manufacture of the products Government of India note that in the first stage, the increase in weight is by a chemical process. In the second stage, butylation which is an etherification process occurs and it is also a condensation reaction. The resultant product is a poly-condensation material in view of the acid catalyst already present in it in small quantity. At the second stage, the increase in weight is due to polycondensation process which takes place in the presence of an acid catalyst. The products as produced and marketed are "resin" inasmuch as Item 15AI (i) of Central Excise Tariff includes in its scope condensation, polycondensation and polyaddition products whether or not modified or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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