TaxTMI 
TaxTMI 
1997 (1) TMI 182
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....olved in this case is as to whether the appellants' product which was a dry distemper was eligible for the benefit of notification of 114/73 (as amended) and in force after the introduction of new tariff. 3. This notification exempts "all mixtures of the nature of pigments or dry colours falling under chapter 25/28 or 32 as the case may be of the Schedule and prepared by the admixture of the goods specified in the Schedule annexed to this notification from the whole of duty". It was their contention that their product falls under chapter 32 and is classifiable under heading 32.10 and there is no dispute about this fact. 4. The department is seeking to deny the benefit on the ground that distempers are not covered by the abov....
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....hat it includes :- (1) Chalk powder (2) Pigments of Dyes (i) Titanium Dioxide (ii) Carbon Black (iii) Natural Synthetic Oxides of Iron (iv) Prussion Blue (v) Lake Colours and Dyestuffs etc. (3) Glue (Binding agents) less than 4%. 9. It was his submission that they are producing more than one products from these ingredients but all these are mentioned in the Schedule annexed to the notification excepting glue. The schedule also includes extenders, suspending agents, or fillers, or diluents; and covers inter alia titanium oxide, carbon black and lake colours and pigment dyestuffs, and oxides of iron pigment. 10. It was his submission that the exclusion of glue from this schedule does not make any differ....
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....all under 32.10.10 which covers dry distemper, and it is not in dispute that the product in question is a dry distemper. (ii) Secondly, admittedly they are using glue as binding agent and it is not an item mentioned in the schedule to the notification. (iii) The appellants have not been able to show that dry distemper and the dry colours or pigments are the same thing. Since the exemption notification refers to chapter 32 and under this chapter these products are recognised as different items, therefore the benefit is applicable only to those items which had been explicitly so mentioned in the notification's main body. 14. As regards HSN though it refers to distempers and describes what they are the notes do not indicate or sa....
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.... be that as it may while the terms as used in the chapter are required to be taken note of in view of the language of the wording of the notification itself allow us to take into account the products which are in the nature of pigments or dry colours. 18. Further, it is true that the Calcutta II trade notice has issued a notification expressing the view that the exemption in terms of notification no. 114/73 not available to distemper but the word used is the `said dry distemper', the proportion of which had been indicated in the public notice itself. It is again true that this proportion also shows binding agent less than four per cent. However, we observe that while issuing this trade notice apparently no notice has been taken of c....