Chemically modified alkyd resin qualifies for exemption where technical material shows the modifier function and the reference list is not exhaustive.

The product described as "Modified Short Oil Linseed Oil Alkyd" was treated as a chemically modified alkyd resin for purposes of Notification No. 122/71-CE. The Tribunal accepted authoritative technical material showing that formaldehyde could function as a modifier in alkyd resin technology, and held that a departmental reference listing modifiers was not exhaustive. On that basis, the product was found to fall within the expression "alkyd resins" in the notification and to qualify for exemption; the departmental appeal therefore failed and the assessee's exemption claim was upheld.

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Issues: Whether the product described as "Modified Short Oil Linseed Oil Alkyd" was a chemically modified alkyd resin covered by Notification No. 122/71-CE dated 1.6.71.

Analysis: The product was claimed to be a modified alkyd resin on the basis that paraformaldehyde participated in the chemical reaction and improved the properties of the resin. The departmental view relied on a technical reference listing certain modifiers and treated the absence of paraformaldehyde from that list as decisive. The Tribunal held that the list in the departmental reference was not exhaustive, and that the assessee had produced authoritative technical material showing formaldehyde as a modifier in alkyd resin technology. On that material, the product was found to be chemically modified.

Conclusion: The product was held to fall within the expression "alkyd resins" in the notification and was entitled to exemption.

Final Conclusion: The departmental appeal failed and the assessee's classification for exemption was upheld.

Ratio Decidendi: A technical list of modifiers in a reference work is not conclusive where other authoritative material shows that the substance used functions as a modifier and the product is therefore a chemically modified resin covered by the exemption notification.

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