1982 (12) TMI 199

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....the Central Excises and Salt Act, 1944 and heard as an appeal, are - (a) Whether an intermediary product-identified as "Master Batch Chips"-in the manufacture of Marblex Tiles, is excisable at all; and (b) Whether the aforesaid mixture "Master Batch Chips" is assessable to duty as a plastic material in terms of Item 15A(1)(ii) of the Central Excise Tariff in the First Schedule to the Central Excises and Salt Act, as it existed at the relevant time. 2. Admittedly, the product in question : "Master Batch Chips" is a mixture of some raw materials of which polyvinyl Chloride, a Copolymer, adverted to in Tariff Item No. 15A(1)(ii), forms 15% only of the total ingredients, apart from plasticizer to the extent of 4%, at a stage prior to t....

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....eard as an Appeal. 4. The reasons of both the aforesaid authorities for rejecting the contentions of the present appellant, in a brief compass, are : (a) the mixture "Master Batch Chips" is an independent intermediary product manufactured for the use of the appellants themselves and is hence assessable to duty regardless of whether it is bought and sold in the market; (b) the Chemical Examiner in his report described it as a plastic material in coloured flakes ; (c) the Trade Notice relied upon did not relate specifically to the product in question which contains plasticizer in addition to the copolymer. That was not the case dealt with in the Trade Notice ; (d) the copolymer is not present in traces but substantially. Althou....

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....of aliunde that it was "manufactured" and has a distinctive name, character and use of its own. Just as the secrecy of the formula of the process does not negate "manufacture", if indeed there be any, mere long storage does not lend the mixture in question, a distinct name, character and use, when it has none. 9. Similarly, except for the Chemical Examiner's unwarranted statement to the effect that the mixture in question is a plastic material in coloured flakes, regardless of the actual content of the copolymer, there is nothing on the record to justify the classification of the mixture in question under Item 15A(1)(ii) of the First Schedule to the Act. Once it is admittedly containing merely 15% of Polyvinyl Chloride, a Copolymer falli....