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TMI Blog2001 (7) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing "Latex Based Adhesives" with brand name 'CARLAW' and 'COATOLEX' and were issued a Show-Cause Notice, proposing to deny duty exemption by classifying them as Prepared Adhesives under CETA Heading 3506. The Commissioner decided that 'COATOLEX' is 'Creamed Latex' and CARLAW is an adhesive, relying on the Report of Rubber Bond and dropped the entire demand as 'COATOLEX' was exempt from du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tex during the process of manufacture are only in the nature of preservatives. It is a well-known fact that a preservative should retain the original property of a product. The substances added while centrifuging the latex do not appear to be preservatives and it is clear that the treatment yields a product which has the property of adhesive. It can further be noted the latex as it was before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereof and not with glue or adhesives with rubber base. 5. Considering the process of manufacture, presence of the chemical contents, difference in property of latex before and after processing, market name, name of the impugned product in sales tax records and the Chapter notes as mentioned above, the product "Coatolex" appears to be classifiable under Chapter Heading 3506 as "PREPARED ADHESIVES" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to conclude that the processing undertaken on Latex, at the respondents premises result in any 'increase of bonding strength' of the product. In absence of such evidence, we find no validity to conclude that 'Stronger Bonding' is induced in the product to call for classification as proposed in the notice. (b) Examining the notes, we find note 5 to Chapter 40 of CETA reads - "5 (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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