Phenolic resin exemption retained where marble dust was only an inorganic filler, not a blend with other synthetic resin.

Phenolic resin lamp capping cement Grade PR/707 remained covered by Notification No. 122/71-C.E. because the product was phenol formaldehyde synthetic resin with marble dust used only as an inorganic filler. The notification excluded blends of phenolic resins with other artificial or synthetic resins, not mixtures containing inert fillers. As no other artificial or synthetic resin was present, the filler did not take the product outside the exemption. The product was therefore entitled to concessional assessment, and the denial of the concession was set aside.

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Issues: Whether phenolic resin lamp capping cement Grade PR/707, containing marble dust as an inorganic filler, fell within the expression "phenolic resin" in Notification No. 122/71-C.E. and was eligible to concessional assessment.

Analysis: The notification covered synthetic resins manufactured from phenols and aldehydes and included chemically modified phenolic resins and liquid phenolic resins, but excluded only blends of phenolic resins with other artificial and synthetic resins. The sample was found to contain phenol formaldehyde synthetic resin with inorganic filler, namely marble dust. The decisive question was whether the filler created a disqualifying blend. The absence of any other artificial or synthetic resin, and the fact that marble dust was merely a filler, meant that the product was not taken out of the notification. The earlier rejection proceeded on an incorrect understanding of the notification and of the effect of the filler.

Conclusion: The product remained a phenolic resin for the purposes of Notification No. 122/71-C.E. and was entitled to concessional assessment.

Final Conclusion: The appeal succeeded and the order denying the concession was set aside, with the product directed to be assessed under the notification.

Ratio Decidendi: A phenolic resin does not cease to fall within a concessional exemption merely because it contains an inorganic filler, unless it is blended with another artificial or synthetic resin.

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