TaxTMI 
TaxTMI 
2000 (12) TMI 411
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....n under Notification No. 101/66-C.E., dated 17-6-1966 (as amended) as applicable to the emulsifiers, wetting out agents, softeners and other like preparations intended for use in any industrial process. In the show cause notice dated 24-4-1991, it was proposed that the correct classification of the Penetrator was under Heading No. 38.09 of the Central Excise Tariff which covered finishing agents, dye carriers to accelerate the dyeing or fixing up dye-stuffs and other products and preparations, of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included. Invoking the normal period of limitation of six months, the central excise duty of Rs.1,24,094.45 was demanded for the period October, 1990 to March, 1991. The Asstt. Collector of Central Excise, Hyderabad, who adjudicated the matter under her order-in-original dated 24-4-1992 vacated the show cause notice. The view taken by the adjudicating authority was confirmed by the Collector of Central Excise (Appeals), Hyderabad under his order-in-appeal dated 28-2-1994. 2. In the grounds of appeal, the Revenue has explained that the product - Penetrator had the property of anchoring the dye ....
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...., its main function was as an agent for anchoring the dye particles and to act as a driving agent in the impregnation of dye for spray dyeing of leather. 5. Let us now consider whether the Penetrator was classifiable under sub-heading No. 3402.90 of the Central Excise Tariff or under sub-heading No. 3809.00 of the said Tariff. 6. Heading No.34.02 covers the following:- "34.02 Organic surface-active agents (other than soap); surface active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap. 3402.10 Sulphonated caster oil, fish oil or sperm oil 3402.90 Other." Under Chapter Note 3 of Chapter 34 of the Tariff, it is explained as under:- "3. For the purposes of heading No. 34.02, 'organic surface active agents' are products which when mixed with water at a concentration of 0.5 per cent at 20°C and left to stand for one hour at the same temperature: (a) give a transparent or translucent liquid or stable emulsion without separation of insoluble matter; and (b) reduce the surfa....
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....itself it is of little use to give a finish to the leather surface." In their reply dated 17-6-1991, the assessee had submitted that Hyoxide AAO and Hyoxyd AAN were surface active agents. They have submitted as under :- "as the product is made out of duty paid surface active agent [viz. (i) Hyoxide AAO, (ii) Hyoxyd AAN]." Isoprophyl Alcohol has been defined in the Condensed Chemical Dictionary 9th Edition revised by Gessner G. Hawley at page 483 as under : - Isopropyl alcohol (IPA; dimethylcarbinol; sec-propyl alcohol; isopropanol; 2-propanol) (CH3)2CHOH. Properties : Colorless liquid. Pleasant odor; b.p. 82.4O C; sp. gr. 0.7863 (20/20OC); refractive index 1.3756 (20OC); sp. ht. 0.65 cal/g; f.p. - 86OC; critical temperature 235OC; critical pressure 53 atmospheres; vapor pressure 33 mm at 20OC; flash point 59OF (TOC); heat of combustion 14.346 Btu/lb; heat of vaporization 288 Btu/lb; viscosity 2.1 cp (25OC). Autoignition temp. 750OF. Soluble in water, alcohol and ether. Derivation : By treatment of propylene with sulfuric acid and hydrolyzing. Method of purification :  Rectification. Grades : 91%; 95%; 99%; N.F. (99%); Nanograde. Containers : ....
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....s in mixture of Isoprophyl Alcohol and Butyl Glycol and demineralised water under mechanical agitation. The Collector of Central Excise, Hyderabad in the review order had stated as under :- "The Penetrator has the property of anchoring the dye particles and fixing them inside the pores of the leather surface. The product is manufactured by dissolving suitable wetting agents in a mixture of organic solvents and demineralised water under mechanical agitation. Main raw materials used are: Isopropyl Alchohol, Butyl Cellusolve Hyoxyd AAN and Hyoxyd AAO. As the name implies penetrator 4893, aids the penetration of dye solutions so that the dyes are very well anchored to the leather surface. This is a very useful auxilliary agent when spray dyeing of leather is resorted to. Even though the penetrator has certain surface active properties as pointed out in the Chemical Examiner's report. Its main function is as an agent for anchoring the dye particles and to act as a driving agent in the impregnation of dye. According to the composition naenu use utilisation, the product has the essential characteristic of that of an anchoring agent for dye particles and also that of a driving agent in ....
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....face tension of liquids or reduction of inter-facial tension between two liquids or a liquid and a solid. 13. Reduction of the surface tension could not be the same as penetration which is used to increase the 1 speed and ease with which a bath or liquid permeates the material being processed - leather in this case. Further, as already mentioned above, the surface active agents was one of the other materials with which the product was manufactured. It could not be said that it continued to remain the surface active agents after the elaborate process of manufacture as on record. The fact that it contained surface active agent will not mean that it was classifiable as surface active agent. 14. According to the Revenue, the correct classification of the product - Penetrator was under Heading No. 38.09 of the Tariff which covered the following:- 38.09 3809.00 Finishing agents, dye carriers to accelerate the dyeing or fixing of dye-stuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included." Heading No. 38.09 finds place in Chapter 38 for ....