TMI Blog1998 (4) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... notice dated 15-1-1991 for the period from 1-3-1986 to 31-5-1990, in the facts and circumstances of the case, is barred by time. 3. Dealing with the first question, the adjudicating authority has stated that the appellant firm herein has gone by the application of Putty. While it is conceded by the said authority that this is one of the factors to be considered, the composition of the material cannot be ignored which, according to it, is obviously such as to distinguish it from Putty. The essential characteristic of paints, finds the adjudicating authority, is that it is a free-flowing liquid and consists of a smooth, uniform suspension of fine particles or pigment in a liquid medium. The adjudicating authority finds that this is fully sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or. In view of this, the finding of the adjudicating authority, submits the learned Consultant, is faulty. 6. On the other hand, learned JDR Shri R.K. Roy reiterates the findings of the adjudicating authority. He has also attempted to explain to us the Chapter Note of Chapter 32 which we find is totally irrelevant because that speaks of solution of paints and varnishes falling under Tariff Heading 32.08. As rightly pointed out by the learned Consultant for the appellant firm, the product is to be assessed in the form in which it is removed from the factory or it is consumed in the manufacture of another product in the factory itself. Since the product is in the form of grey soft paste, we have to assess it as it is and not on its dilution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d putty as such is quite different and the assessee had mis-declared the composition before the AC concerned inasmuch as the complete composition of the material was not disclosed. In the face of this suppression, it is felt that there is enough justification for invoking Section 11A proviso. 9. This finding of adjudicating authority is totally against the facts. There is difference between Duco Putty and Putty as we have already held above. The adjudicating authority has relied upon the dilution of Putty being paints. But as found above, dilution of Putty cannot be considered to be Putty and therefore, the finding of mis-declaration attributed to the appellants is not sustainable. Hence, we set aside the demand of duty as barred by ti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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