1982 (5) TMI 181

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ication of the product, Ion Exchange Resin. The process of manufacture consists of first producing Divinyl Benzene Co-polymer Beads (hereinafter called D.V.B. Beads) and thereafter subjecting the beads to certain processes which result in the final product, viz. Ion Exchange Resins. In the case of M/s. Tulsi Fine Chemical Industries (Pvt.) Ltd., Pune, M/s. Resinous Chemical Product, Trichur and M/s. Chemi-tech Pvt. Ltd., Trivandrum the Appellate Collectors have held that the product (Ion Exchange Resin) is not classifiable under Tariff item 15A (1)(ii) of Central Excise Tariff. On a tentative view that these orders of the Appellate Collectors were not correct, the Government issued show cause notices to the three parties under section 36(2)....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....that the mere use of the term 'resin' to describe that product would not lead to the conclusion that the product has resinous properties. They have argued that the moment the D.V.B. beads, which are a resin, are subjected to further treatment, an entirely new product emerges and this product may or may not have resinous properties. In one case, namely, that of Tulsi Fine Chemical Industries, some samples of the Ion Exchange Resins were tested by the Chief Chemist who had reported that the samples did not have resinous properties. It is, however, not clear as to whether each variety of Ion Exchange Resins manufactured by the party was tested by the Chief Chemist. The parties have further submitted that on the question of assessment of Ion Ex....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sinous properties/characteristics. If on test it is found that an Ion Exchange Resin possesses resinous properties, it would be classifiable under Tariff Item 15A (1)(ii) of Central Excise Tariff. If on the other hand it is found on test to have no resinous properties, then it would be classifiable under Tariff Item 68 of Central Excise Tariff. Government would like to make it clear that if after test the goods in question are found classifiable under Tariff Item 68 of Central Excise Tariff, the duty under the aforesaid T.I. 68 ibid would be chargeable right from the time Tariff item 68 came into force i.e. 1-3-75. It, therefore, follows that the demands for duty where due should be modified accordingly and excess duty, if any, charged shou....