TMI Blog1977 (6) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... cond petitioner is its Managing partner. They have a factory at Udhna which manufactures phenol Formaldehyde Moulding powder, a synthetic resin popularly called "Phenolic Resin" This substance "Phenolic Resin" is manufactured in various forms namely lump solid liquid and moulding powder, the basic ingredients being Phenol and Formaldehyde. For the purpose of excise duty the Phenolic Resin or Phenolic Moulding Powder was assessed under Item No. 15A of the First Schedule to the Central Excises and Salt Act 1944 (hereinafter referred to as "the Act") read with the Notification dated September 23, 1965. This item No. 15-A reads; "15A. Artificial or synthetic Resins and Plastic Materials and Articles thereof. forty per cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount refunded to them under the exemption provision should not be recovered and subjected to higher excise duty at 40 per cent ad valorem. Replies were sent by the petitioners to the said three notices requesting the Assistant Collector, Central Excise, Surat to give reasons to enable them to make proper representation. It is not in dispute that prior to the show cause notices the petitioners were given the benefit of the notification of the Central Government under which the goods in question were subjected to levy of excise duty at 18 per cent ad valorem. That decision of the respondents was based on the report of the Chemical Examiner, Central Excise, Baroda. In this report addressed to Central Excise Superintendent he opined - "T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion that the respondents erred in asking the petitioners to pay back the amount refunded to them and in calling upon them to pay excise duty on the produce phenolic Moulding powder at 40 per cent ad valorem without disclosing the grounds on which they issued the show cause notice or collected excise duty at 40 per cent ad valorem. 5. We, therefore, quash the three show cause notices and also the order on the application of the petitioners dated March 5, 1976 asking for refund of differential amount of excise duty on phenolic moulding powder. The respondents would be at liberty to issue fresh show cause notices disclosing the grounds on which they propose to levy excise duty at 40 per cent ad valorem. That the same can be issued by them ..... X X X X Extracts X X X X X X X X Extracts X X X X
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