Phenolic resin exemption extends to chemically modified moulding powder used for specific applications.

Notification No. 122/71 exempted phenolic resins, and its inclusive language was read to extend to chemically modified phenolic resins used for a particular purpose. Phenol formaldehyde moulding powder, produced by chemical reaction of phenolic resin with fillers and other additives, was not treated as a different product merely because it was processed or modified for use. The exemption was unavailable only if the product amounted to a blend of phenolic resin with other resins, which was not the position on the stated facts. The product was therefore eligible for exemption as a phenolic resin.

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Issues: Whether phenol formaldehyde moulding powder is entitled to exemption under Notification No. 122/71 as a phenolic resin.

Analysis: The product was obtained by chemical reaction of phenolic resin with fillers and other additives for a particular use. The notification extended exemption to phenolic resins, and its inclusive wording enlarged the scope to cover chemically modified phenolic resins as well, so long as the product was not a blend of phenolic resin with other resins. On that construction, the product did not cease to be a phenolic resin merely because it was processed or modified for use.

Conclusion: The product was held eligible for exemption under Notification No. 122/71 as a phenolic resin.

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