9911796707
TMI Blog1990 (9) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Therespondents herein manufacture plastic laminated sheets and in the process of such manufacture, synthetic resins are used as intermediate products. The raw materials used are :- (1) melamine (2) formaldehyde (3) phenol (4) methanol (5) caustic soda (6) hexamine (7) hydrochloric acid Formaldehyde is pumped into reaction vessel and thereafter, melamine is added with constant stiring. Hydrochloric Acid in very small quantity is added to bring down the PH (to accelerate the reaction). Thereafter, the temperature is increased to 60° to 80° as required and thereafter, the same is brought down to 60°. At that time, some quantity of Caustic Soda or methanol, as the case may be, is being add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this connection, I may also state that the samples received by the Chief Chemist were in a hard solid mass state. From the above, obviously, they have been fully polymerised to solid state in transit period with the passage of time in view of the continuous reaction of polymerisation in the absence of addition of stabiliser. Moreover, melamine resins for laminating applications are low to moderate molecular weight polymers of melamine/melamine phenol and formaldehyde. These solutions tend to polymerise to an undilutable state on storage. They are known in the books as laminating resins. Item 15A(1) of the Central Excise Tariff includes liquid resin and has the clause whether or not polymerised. In this case, though the solutions were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marketability is an essential ingredient for excisability. This Tribunal in the case of Collector of Central Excise v. Bakelite Hylam Ltd. [1990 (46) E.L.T. 552] has held that phenol formaldehyde stage 'A' resin being unstable and having a short shelf-life and not marketable, is not liable to excise duty under Item 15(A) CET. 8. We see no reason to take a different view from the decision of the Tribunal (supra) which in turn is based upon the judgment of the Supreme Court in Bhor Industries Ltd. v. Collector of Central Excise. Respectfully following the ratio of the above decision and since the Revenue has not discharged its duty by adducing evidence that the synthetic resins in dispute are stable and marketable, we uphold the finding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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