Exemption for resin bonded glass wool mats upheld where bonding chemicals were only superficially applied, not impregnating the fibres.

Resin bonded glass wool mats were found not to be impregnated, coated, covered or laminated with plastics or varnishes so as to fall outside Notification No. 52/86-C.E. The decisive test was whether the bonding material had penetrated the fibres and filled the interstices throughout the thickness of the mat; the technical reports indicated only superficial application of bonding chemicals on the glass fibres. On that basis, the product was treated as a bonded non-woven mat rather than an excluded article, and the exemption remained available.

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Issues: Whether resin bonded glass wool mats were impregnated, coated, covered or laminated with plastics or varnishes so as to deny exemption under Notification No. 52/86-C.E. and, consequently, whether the Revenue's appeal against grant of the exemption was liable to succeed.

Analysis: The product was manufactured by spraying bonding chemicals on glass fibres and curing them into a bonded non-woven mat. The decisive question was whether this process amounted to impregnation or other prohibited treatment. The technical material and reports considered by the appellate authority indicated that bonding material had not penetrated through the fibres and had only been superficially spread, whereas impregnation would require the interstices to be completely filled throughout the thickness of the material. The Revenue did not successfully rebut the finding that the product was bonded rather than impregnated, coated, covered or laminated, and the earlier view in a similar matter was also relied upon.

Conclusion: The product was held not to fall within the exclusion in the notification, and the exemption remained available. The Revenue failed to establish that the goods were ineligible for the benefit claimed.

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