1997 (11) TMI 304

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the latter again liable to duty under the same tariff entry 15A(1). 2. Original authority, namely, Collector of Central Excise, Calcutta-II has held that the solution of "Araldite", in the above circumstances is not liable to duty again. It held that the process does not amount to manufacture of another commodity. "Araldite" resin in cake-form is converted to another form i.e. solution without bringing into existence another commodity known to the trade having a different name, character and use. The said authority, in coming to the aforesaid conclusion, has relied on several judgments of Courts and the Tribunal which are as follows :- (1) M/s. Coromandal Prodorite (P) Ltd. v. Government of India [1985 (20) E.L.T. 257 (Mad.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 33.7%. The whole process brings about a new resin solution which is different from Araldite in cake-form. Such process amounts to manufacture under Section 2(f) of Central Excises & Salt Act, 1944. (b) Epoxy medium (Resin Solution), before use in the manufacture of paints, is tested at the Research & Development Laboratory to certify its quality for use in the paints industry. (c) The argument that the product is not known in the market is not substantiated. It is obviously a product which have been manufactured as a distinct commercial value. (d) The processes of manufacture of Araldite and the Resin Solution are different. When the processes of manufacture are different which result in bringing into existence of d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n order to appreciate the controversy, we reproduce the relevant portions of tariff entry 15A as it existed during the period concerned. "15A. Artificial or Synthetic resins and plastic materials; and other materials specified below - (1) ........... (2) ........... (3) ........... (4) ........... [There is no dispute that araldite resins in cake-form fell under sub-item (1) above] Thereafter, there are three Explanations. Explanation III is relevant for our purpose which is reproduced below : "Explanation III : Sub-item (1) is to be taken to apply to materials in the following forms only :- (a) Liquid or pasty (including emulsions, dispersions and solutions); (b) blocks, lumps, po....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t is not a new and commercially identifiable article and it is, therefore, not liable to excise duty: Apex Court, in coming to its aforesaid conclusion, relied on one of its earlier judgment in the case of Minerals and Metals Trading Corporation of India Ltd. v. U.O.I. [1983 (13) E.L.T. 1542 (S.C.)], relevant extracts of which are quoted in para 4 of the report 1995 (78) E.L.T. 641. It has been observed therein : "The separating of wolfram ore from the rock to make it usable ore is a process of selective mining. It is not a manufacturing process. The important test is that the chemical structure of the one should remain the same. Whether the ore imported is in powder or granule form is wholly immaterial....." (emphasis supplied) 4.5&e....