TMI Blog1984 (7) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... l for disposal as if it were an appeal filed before it. 2. The facts of the case, briefly stated, are that the appellants (hereafter referred to as IPCL) cleared mixed-xylene falling under Item No. 6 of the Central Excise Tariff Schedule at nil rate of duty in terms of Central Excise Notification No. 276/67, dated 21-12-1967 to M/s. Alkalies Chemicals Corporation of India Ltd. (ACCI). Since the mixed-xylene was used by the latter as solvent and thinner for manufacture of paints and varnishes, the Department took the view that IPCL was not entitled for exemption under Notification No. 276/67. The C.T. 2 certificate (the prescribed certificate for availment of the benefit of Chapter X Procedure) against which the clearances were effecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, IPCL was liable to pay the differential duty. He also reduced the penalty from Rs. 250/- to a token amount of Rupee one only. 3. In the hearing before us on 2-7-1984, Shri R.K. Gupta, appearing on behalf of IPCL, submitted that Notification No. 276/67 was squarely applicable to the facts of the case and that all the clearances numbering 14 were eligible for total duty exemption. Paints and varnishes, in accordance with Departmental practice and understanding, were taken to be chemicals and Notification 276/67 authorised exemption from duty on mixed-xylene used in the manufacture of chemicals. In support of this contention, he drew our attention to the broad commodity groups in the Central Excise Tariff wherein Paints and Varnishes are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in provided that the Collector of Central Excise is satisfied that the goods are intended for use, among other things, as solvent or diluent or thinner in the manufacture of paints, varnishes, lacquers and allied materials for use in painting. 7. The issue for determination is whether the IPCL was entitled to the benefit of Notification No. 276/67 or 35/73. IPCL s contention is that since paints are broadly classifiable as chemicals and have so been classified in the Excise Tariff, they are eligible for the benefit of Notification 276/67. The Department s contention, on the other hand, is that Notification No. 35/73 is the one which is specifically applicable to mixed xylene cleared for manufacture of paints and varnishes. 8. Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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