TaxTMI 
TaxTMI 
1991 (1) TMI 313
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....as used by them for making C.P. 3 coating used in the manufacture of layer flat cells. 2. It is not disputed that in the year 1967-68 the question was raised as to the precise use of Toluol brought by the respondents under Chapter X. The then Deputy Chief Chemist examined the produce and reported 'C.P. 3 coating is not similar to that of a normal paint or varnish sold in the market nor its function is that of paint and varnish, hence it cannot be identified as paint or varnish'. The question about the character of C.P. coating manufactured by the respondents out of Toluol was again raised in 1977. Test report of the then Deputy Chief Chemist dated 14-10-1980 was that 'thus from the mode of manufacture of the product, its application as a c....
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....certain mineral oil products used as thinner or diluent for the manufacture of paints etc. including allied materials. Only because the term 'allied materials' occurred in this exemption notification, it is doubtful if the product of the applicants which is stated to be bearing some similarity to paint can be treated as other than chemical formulations. The question involved in this appeal is whether the C.P. 3 compound manufactured by the appellants is a chemical formulation as mentioned in exemption Notification No. 276/67 dated 21-12-1967 or a formulation other than chemical. Since two Chemical Test Reports had specifically stated that this product is neither a paint nor a varnish, majority of the chemical opinion had to be taken. Even i....
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....d not only as a diluent but, also as a thinner during actual coating operation to make up the loss of the solvent due to evaporation to adjust viscosity and maintain the consistency. From the stated use of the Toluol it cannot be inferred that this is a chemical formulation. None of the ingredients like carbon particles, binding agent like resin and solvent present in the product are capable of functioning as chemicals by themselves or the combinations as a whole. It has, therefore, been urged that the benefit of Notification No. 276/67-C.E., dated 21-12-1967 would not be available to the respondents. Hence the prayer that the impugned order be set aside. 4. The respondents' learned advocate, on the other hand, urges that C.P. 3 is nothing....