1997 (12) TMI 207

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er IPCL at concessional rate. This notification exempted materials including Xylene from duty on condition inter alia that the jurisdictional Asstt. Commissioner is satisfied that the material is intended for use as solvent or diluent or thinner for the manufacture of paints, varnishes, lacquers and allied materials. The Department gathered intelligence that the appellants were clearing the petroleum products in its original form as thinner in bulk packing in the name of Sigma Stove Thinner. The officers visited the appellants factory on 7-8-1982 and conducted the enquiry which revealed that the appellants were receiving Mixed Xylene under concessional rate under Notification 35/73 for specified industrial use as for manufacture of varnishe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ase of Shalimar Paints v. Commissioner - 1997 (95) E.L.T. 555 where the Tribunal has held that the concessional rate of duty under the Notification 75/84 will be available to thinner because the thinner is an allied material to the output goods mentioned therein. The ld. Counsel submitted that the Mixed Xylene was removed in drums to their factory at Andheri because that factory was not equipped to receive Mixed Xylene in bulk and the ld. Counsel pleaded that the ultimate object of the concessional notification was fulfilled because in their factory at Andheri the material is used for manufacturing of paints. 3. We have heard Shri V.K. Puri, the ld. DR who contended that the ratio of the Tribunal decision cited by the appellant is n....