9911796707
TMI Blog1987 (7) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... sulated. We are concerned with the process of varnishing. That process has been described in para six of the petition and it is as follows : "Manufacturing Process for Varnish: 'DMT', Ethylene Glycel, Glycerine, 'Theic', Trimelletic Anhydride, D.D.M., Zinc Octate and Meta-Cresol (solvent) are first added in a stainless steel reaction kettle which will be described as "first kettle". The first kettle is heated from outside and raw materials inside are stirred. The temperature is slowly increased upto or about 225 degrees Centigrade. Reaction of esterification takes place and by-products of estrification like methanol and water are removed. The material is further heated upto or about temperature of 240 degrees Centigrade so as to build up i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said heavy viscous liquid is not looked upon by the consumers, manufacturers and dealers as resin as known in the market for being bought and sold as such. Just because the heavy viscous liquid contains some resin elements, it cannot be treated and regarded as polyester resin. 3. The petitioners say that they are paying excise duty on the said varnish under Tariff Item 14(II)(i) of the Central Excise Tariff. 4. However, the Excise Department got a brainwave. Sometime in June 1978 they desired to know the manufacturing process adopted by the petitioner-company in respect of the resin produced and used in the manufacture of varnish, and accordingly the petitioners were called upon to furnish the details. The petitioners gave detailed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resting to note that at one stage the Department appears to have acted "pursuant to the orders of the higher authorities" and that is found in a letter dated 19th February, 1980. It is clear that throughout the Department acted at the instance of "the higher authorities". Certainly, the Assistant Collector could not have acted pursuant to any such instructions from the higher authorities. He should have considered the matter independently on the basis of the evidence that was brought before him and also on the basis of all the facts that were placed before him. In the present case, it is clear that the product was at the intermediate stage, as such not saleable, with no market whatsoever, and there is an express statement from the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rown viscous sticky mass being bought and sold in the market. In addition to the affidavit of Mr. Gosalia, the petitioners have also relied on the affidavit of an expert one Dr. Shrikrishna P. Potnis, who is a highly qualified person and who is the 'Senior Professor of Polymer Technology and is the Head of the Plastics and Paints Division in the Department of Chemical Technology of the Bombay University. He had visited the factory of the petitioners and physically checked the process of manufacture of insulating varnishes and the various stages involved therein. He has examined the test report given by the Deputy Chief Chemist of Central Excise, Bombay, and he has stated that the product removed from the first kettle in the form of brown vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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