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of <h1>Tribunal exempts C.P. 3 coating under Notification No. 276/67, citing specific use in manufacturing flat cells.</h1> <h3>COLLECTOR OF CENTRAL EXCISE Versus UNION CARBIDE (I) LTD.</h3> COLLECTOR OF CENTRAL EXCISE Versus UNION CARBIDE (I) LTD. - 1993 (66) E.L.T. 531 (Tribunal) Issues:Interpretation of Central Excise Tariff Item, Application of Notification No. 276/67, Characterization of product as chemical formulation or paint/varnish, Benefit of exemption under Notification No. 276/67, Use of Toluol in manufacturing process, Appeal against duty demands, Evidence from Chemical Test Reports, Applicability of lower appellate authority's findings.Analysis:The case involved the application for an L-6 license in 1967 for receiving Toluol under Central Excise Tariff Item. The product made from Toluol was used in manufacturing C.P. 3 coating for layer flat cells. Disputes arose regarding the nature of the coating, with conflicting opinions from the Deputy Chief Chemist in 1967 and 1980. Duty demands were confirmed by the Assistant Collector for various periods, totaling Rs. 5,10,723.23.On appeal, the Appellate Collector set aside the orders, emphasizing the lack of clarity on whether the product qualified as a chemical formulation under Notification No. 276/67 or as something else. The lower appellate authority highlighted the varying opinions in the Chemical Test Reports and the absence of a clear definition for 'allied materials' in the Central Excise Tariff Item.The appellant argued that Toluol was used in two stages during the manufacturing process and contended that the product did not qualify as a chemical formulation based on its composition and use. The respondents' advocate maintained that C.P. 3 was indeed a chemical formulation, citing references from the Encyclopaedia of Chemical Technology.The Tribunal, after considering both sides' arguments, agreed with the lower appellate authority and the evidence presented by the respondents. It concluded that the C.P. 3 coating was a chemical formulation, making Toluol eligible for the benefit under Notification No. 276/67. The Tribunal found the Test Report inconclusive in labeling the product as paint and emphasized the specific use of the coating in manufacturing layer flat cells.Ultimately, the appeals were dismissed based on the determination that the product constituted a chemical formulation and was covered by the relevant exemption notification.
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