Exemption for epoxy based primer denied where epoxy resin was only one ingredient and product description remained unproved

Exemption under Notification No. 220/77 applied only to epoxy based primers and varnishes, so the assessee had to prove that the product answered that description exactly. The Chemical Examiner's report showed epoxy type synthetic resin, but it did not conclusively establish that the primer was epoxy based. The manufacturing details and classification particulars were unclear as to the resin medium, and the contemporaneous purchase order described a polybutadiene resin based electrocoat primer. A later amendment to that order was unsupported by independent evidence. Mere presence of epoxy resin as one ingredient was insufficient, and the exemption was held unavailable.

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Issues: Whether the product manufactured by the assessee was an epoxy based primer entitled to exemption under Notification No. 220/77.

Analysis: The exemption under Notification No. 220/77 applied only to epoxy based primers and varnishes. The Chemical Examiner's report described the sample as composed of synthetic resin of epoxy type, but did not conclusively establish that the product was epoxy based. The manufacturing process and classification particulars did not clearly show the resin medium or base. The contemporaneous purchase order indicated a polybutadiene resin based electrocoat primer, and the later amendment to that order was not supported by independent correspondence or other material evidence. Mere presence of epoxy resin as one ingredient was insufficient to establish that the product was based on epoxy resin for purposes of the exemption.

Conclusion: The product was not proved to be an epoxy based primer and the exemption was not available; the finding was against the assessee.

Ratio Decidendi: A party claiming exemption must establish that the goods fall squarely within the exempted description, and a mere indication that epoxy resin is one of the ingredients does not satisfy a notification limited to epoxy based primers.

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