Technical meaning of "formulation" extended concessional duty relief to solvent use in malathion manufacture.

Benzene and toluene used as solvent media in the manufacture of malathion (technical) were held to fall within the concessional duty notification because "formulation" was given its technical and chemical meaning. The Board accepted that the use of the materials as solvents satisfied the requirement that they be used in the formulation of pesticidal solutions, sprays and suspensions. The attempted distinction between "manufacture" and "formulation" was treated as having no worthwhile difference for the notification, and the concessional duty benefit was available.

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Issues: Whether benzene and toluene obtained at concessional rate of duty were covered by Notification No. 34/73-C.E. dated 1-3-1973 when used in the manufacture of malathion (technical), and whether such use satisfied the requirement that they be used as solvents in the formulation of pesticidal solutions, sprays and suspensions.

Analysis: The notification was construed by giving the word "formulation" its technical and chemical meaning. The Board accepted the dictionary definition relied upon, under which formulation covered the process in which the motor spirit was used. On the facts, benzene and toluene were used as solvent medium in the process of manufacture of malathion (technical), and the departmental record itself showed that the intended use was as solvents. The distinction sought to be drawn between "manufacture" and "formulation" was held to be without worthwhile distinction for the purpose of the notification.

Conclusion: The appellants were entitled to the concessional duty benefit under Notification No. 34/73-C.E. dated 1-3-1973.

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