9911796707
TMI Blog2001 (7) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... RLAW' and 'COATOLEX' and were issued a Show-Cause Notice, proposing to deny duty exemption by classifying them as Prepared Adhesives under CETA Heading 3506. The Commissioner decided that 'COATOLEX' is 'Creamed Latex' and CARLAW is an adhesive, relying on the Report of Rubber Bond and dropped the entire demand as 'COATOLEX' was exempt from duty under Notification 18/95, dated 16-3-95 and once that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of preservatives. It is a well-known fact that a preservative should retain the original property of a product. The substances added while centrifuging the latex do not appear to be preservatives and it is clear that the treatment yields a product which has the property of adhesive. It can further be noted the latex as it was before the process cannot have such a property so as to give a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. 5. Considering the process of manufacture, presence of the chemical contents, difference in property of latex before and after processing, market name, name of the impugned product in sales tax records and the Chapter notes as mentioned above, the product "Coatolex" appears to be classifiable under Chapter Heading 3506 as "PREPARED ADHESIVES". So it falls out of the ambit of exemption Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Latex, at the respondents premises result in any 'increase of bonding strength' of the product. In absence of such evidence, we find no validity to conclude that 'Stronger Bonding' is induced in the product to call for classification as proposed in the notice. (b) Examining the notes, we find note 5 to Chapter 40 of CETA reads - "5 (a) Heading No. 40.01 40.02 do not apply ..... X X X X Extracts X X X X X X X X Extracts X X X X
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