TaxTMI 
TaxTMI 
2018 (7) TMI 1191
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....against the impugned order, demanding duty on intermediate products emerged namely Urea Formaldehyde Resin, Phenol Formaldehyde Resin and Melamine Formaldehyde Resin. 3. The facts in brief are as under:- "The brief facts of the case is that the appellant is manufacturer of high pressure laminates and compact laminates located in the state of Uttrakhand and is availing the benefit of area based exemption Notification No.50/2003-CE dated 10.6.2003. In the said notification, the goods falling under heading No.3909 to 3915 of Central Excise Tariff Act fall under negative list and are not eligible for the said notification. On the basis of investigation, the Revenue entertained a doubt about misuse of the said area based exemption by the a....
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....nation the product in dispute being not in Primary Form of such nature mentioned therein (requiring curing, etc.) is not to be classified under such heading. The exclusion note made in HSN adds support to the same. The Revenue's assertion that addition of hardening agent does not take away the basic property of the product being a resin is not sustainable in the present dispute. Addition of NH4CL as hardening agent in the reactor/kettle before the resultant product is sent to glue kitchen for use in binding purpose has relevance to decide the issue. Prepared glue as it emerges is put into use in the binding section along with other inputs like wax, NH4CL and water for final binding. Chapter 35 covers glues. CETH covers "Prepared glues and o....
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....ss-examination. The appellant's plea, that in such circumstances, the reliance placed on the test report is not legally tenable, merits consideration. We are in agreement on such plea on the reasons cited above. 17. Regarding purchase of resin reactor from Alex Engineering Works, it is seen that Revenue placed reliance on purchase order which mentioned the product as "MF Resin Reactor". The appellants have contended that there are various types of equipments and machineries available for use in their type of industry. The suppliers of machinery made visits and had detailed discussions, thereafter the decision was to supply equipments of description appearing in their invoices of March, April, August and September, 2009. The details....
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....bmitted that the impugned goods are prepared for specific need and requirement of bonding of wood fibers/wood particles/coating of papers during the manufacture of final product like MDF Board, Particle Board, etc. The fact is that the preparation of impugned goods is in one stage process under controlled temperature and pH and addition of Ammonium Cloride Formic Acid in the processes, the emerging product being transferred to glue kitchen area for final use in bonding. We find that the classification of the product as primary resin is not sustainable. This is supported by Note-6 of Chapter 39 and HSN Explanation of such note. As such denial of exemption is not sustainable. Considering the above discussion and finding, we allow the appeal b....