TaxTMI 
TaxTMI 
1981 (1) TMI 266
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....ariff, the petitioners continued to avail of the benefit of this exemption notification till 1975, notwithstanding the insertion of Entry 14D in the Central Excise Tariff, w.e.f. 1-3-1961 as a result of which the 'Lake Colour' came within the purview of Item 14D instead of Item 14 of the Central Excise Tariff. By an amending notification lake colours were taken out of the scope of the aforesaid Exemption Notification No. 23/55 and simultaneously another Notification No. 104/75 was issued so as to exempt Lake Colours falling under Item 14D of the Central Excise Tariff from so much of the duty of Central Excise leviable therein as was in excess of 10%. Consequent on this change the Asstt. Collector classified the product as 'Lake Colour' fall....
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....ation No. 144/75, dated 30-4-1973. It was contended that Notification No. 114/73 was nothing but a continuation of Notification CER/8/4 of 1955 and that when Notification 23/55 was amended to delete (Lake Colours) no such amendment was effected in Notification No. 114/73 which could only be inferred to mean that the benefit of that notification was still available to 'Lake Colour'. 4. Government of India have carefully considered all the submissions. Government observe that apart from the petitioners own declaration of the product as 'Lake Colour' before 30-4-1975, the sample of the goods was tested by the Chemical Examiner of New Delhi and was found to be mainly composed of Calcium carbonate and a pigment dyestuff and it was found ....
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....II. Glossary of Chemical Terms by Clifford. Hampel and Gessner G. Hawley, Page 160 - "Lake. A class of water-insoluble organic pigments made by precipitating a soluble dye on an absorptive inorganic base (aluminium hydrate). Soda ash, calcium Salts, and other metallic salts can be used as precipitants. Lakes are limited in their service aspects because of their sensivity to light; their chief uses are in printing inks, interier paints, etc. where there is minimum exposure to sunlight, and in road colourants. See also dye; pigments." Ibid under the heading pigment it is stated that synthetic organic pigments include lake. IV. Paint Technology Manuals Part Six "Pigments, Dyestuffs and Lakes" by Chapman and Hall, London, Page 2....
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....m the original pigment dyestuff in shade and intensity of the colour. Government observe that different grades of such products are marketed and irrespective of the shade or intensity of the colour the product would be a pigment dyestuff classifiable under tariff Item 14D. Government accordingly held that the goods as (Lake Colour) are nothing but pigment dyestuffs classifiable under Item 14D Central Excise Tariff. The party's contention that the goods were sold as `Modlin Lime Colours' would not come to their rescue because `Modlin Lime Colours' is nothing but their trade mark as could be seen from the samples of the containers shown by the party. Government further observe that the party themselves do not deny that they had themselves dec....
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....to mixtures prepared by admixture of goods mentioned in the schedule to the notification. 6. Government further observe that in allowing the party's appeal the Appellate Collector held that the goods are not 'lake colours' and that they were eligible for the benefit of Exemption Notification 23/55 as amended by Notification No. 103/75. Government are unable to appreciate how the Appellate Collector could conclude that the benefit of Notification No. 23/75 could still be extended to the goods which were earlier being extended to them as 'lake colours' and which could no longer be extended to them after lake colours were taken out of the purview of Notification 23/55 by amending notification No. 103/75. Since the exemption notificatio....