TMI Blog1986 (6) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... bay on 10.3.1983 and as per Chemical Examiner s report, dated 10.5.1983 that sample was an Aqueous solution of polyacrylamide synthetic resins with the advice to ascertain actual end-use of the product. The Revenue Authority had given a copy of the test report to the respondent, and stressing on the application of the product, the respondent clarified that the solution was applied to textile fabric by padding technique. Since the tariff advice as referred to above suggests that the padding solutions are classified under tariff Item 68 and not under tariff Item No. 15A. The respondent insisted to have classification of the product under tariff Item No. 68 under appropriate benefits. A show cause notice on 26.8.83 was issued by the Range Supdt. for proper classification under tariff Item No. 15A. In reply to the said show cause notice, the respondent contended that the product was a synthetic finishing agent used exclusively for finishing textile material. It is composed of sorgen 50 to the extent of 20% and diluent 80%. The product is highly soluble in the water and the solution is applied to the fabric by padding technique. In order to comply with observation of chemical examiner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Rubber India Ltd. v. Union of India and Others reported in 1983 - ELT - 1566 wherein the Hon ble Supreme Court had held that when article is by all standard classifiable under a specific item in the tariff schedule, it would be against the very principle of classification to deny it the parentage and consign it residuary item. Shri Sundar Rajan has pleaded for the acceptance of the appeal. 4. Shri A.M. Setalvad, the learned Sr. Advocate, has appeared on behalf of the respondent. He has referred to the ground of appeal No.3 wherein the appellant has mentioned that the respondent is manufacturing Diakanol AMH mainly from a product known as Sorgen-50". The Sorgen-50" is manufactured from acrylamide. The chemical analysis of the product also shows that it is and aqueous solution of polyacrylamide synthetic resin (copy of test report of Deputy Chief Chemist, Bombay is enclosed and marked as Exhibit A ). Polyacrylamide is a derivative of polyacrylic (formed as a result of reaction between polyacrylic and ammonia) polyacrylic derivatives clearly fall under T.I. 15A(1). He has referred to the Tariff Advice No. 43/77, dated 12.12.77 which appears on page 32 of the paper book. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the textile material is prepared. 2 kg. of Diakanol AMH is dissolved in 50-60 litre of water and then 6 kg. of Diakamin DHU (cross-linking agent of DMDHEU type) and 1 kg. of magnesium chloride hexhydrate (catalyst) are added and the solution is made upto 100 litre. The fabric to be finished is padded with the above solution on a padding mangle with 2 dips so as to have a wet pick up of around 70%. The padded fabric is dried at 100 C for 5 min and then cured at 190 C for 4 minutes and the fabric finished as above possesses a durable bulky handle in addition to its wash and wear properties. The use of the padding solution of Diakanol AMH (in the absence of cross-linking agent and catalyst) imparts a semi-durable bulky handle to the finished fabric and it could be used for finishing both woven and knitted fabrics made of cotton or its blend with rayons and synthetics. The learned Advocate has referred to a show cause notice, dated 30.9.1982 which appears on page 30 of the paper book and has pleaded that earlier the goods were being classified under tariff Item 15A and the Revenue had revised the same to tariff Item 68 and the respondent vide his letter, dated 24.10.82 had accepted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct may be ascertained before finalising assessment . He has pleaded that even the Chemical Examiner has not mentioned the actual use of the product and as such the Revenue has got no case. The appeal filed by the Revenue should be dismissed. 5. Shri A.S. Sundar Rajan, the learned JDR, has referred to his ground of appeal No. 3 and has pleaded that Diakanol AMH is manufactured from acrylamide. He has stated that polyacrylamide is a derivative of only polyacrylic (formed as a matter of reaction between polyacrylic and ammonia) polyacrylic derivatives clearly fall under T.I. 15A(1). Shri Sundar Rajan has pleaded that the learned Sr. Advocate has referred to the judgment of the Hon ble Gujarat High Court in the case of Navgujarat Paper Industries v. Superintendent of Central Excise reported in 1977 - ELT - (J67) wherein it was held that the trade notice would be binding on the Department and the Department would be estopped from contending that what was mentioned in the trade notice should not be adhered to contradict the argument of the learned Sr. Advocate, Shri Sundar Rajan has referred to a judgment of the Hon. Bombay High Court in the case of The Union of India v. The Elphinst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NH2))x. White solid; water-soluble high polymer. Derivation : Polymerization of acrylamide with N,N- methylene bisacrylamide. Uses ; Thickening agent; suspending agent; additive to adhesives. Permissible food additive." Relevant extract from Item 15A(i) of the Central Excise Tariff is also reproduced below:- polymerisation and co-polymerisation products (for example, polyethylene, polytetrahaloethylenes, polyisobutylene, polystyrene, polyvinyl chloride, polyvinyl acetate, polyvinyl chloroacetate and other polyvinyl derivatives, polyacrylic and polymethacrylic derivatives coumaroneindene resins); - A simple perusal of the tariff item and the chemical composition of polyacrylamide reflects that derivatives of polyacrylic and polymethacrylic fall under tariff Item 15A. The Hon ble Supreme Court in the case of Dunlop India Ltd. and Madras Rubber Factory Ltd. v. Union of India reported in 1983 - ELT - 1566 had held that when an article is by all standards classifiable under a specific item in the tariff schedule, it would be against the very principle of classification to deny it the parentage and consign its residuary item. Para No. 37 of the said judgment is reproduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art of Item 15A(1) with Clause (i), it is clear that the nature of the products specified therein are highly technical and scientific in character and, therefore, the words used therein will have to be given only their technical or scientific meaning. The different chemical processes like condensation, polycondensation, poly-addition, polymerization, co-polymerization is not language which is capable of being construed in a popular sense. Indeed, it can be construed only in a scientific and technical sense. Adopting any other method of construction of the words used in Item 15A, which are words which fall within the field of chemistry exclusively will amount to wholly defeating the very purpose of making Item 15A a comprehensive one." The Hon ble Bombay High Court in the case of The Union of India Others v. The Elphinstone Spinning Weaving Mills Co. Ltd. reported in 1978 - ELT - 680 had held that even if wrong trade notices are issued still the Government cannot be estopped from convassing the true interpretation of the statute before a court of law as trade notices have no statutory effect. Para 9 from the said judgment is reproduced below :- 9. The main contention urged ..... X X X X Extracts X X X X X X X X Extracts X X X X
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