1. The respondents herein are manufacturers of PVC compound with the brand name Polybond SS 5000 and Polysol 7002 and 7005. They claimed exemption for the product in terms of Notification 206/77-C.E. as amended by Notification 70/84. The product was subjected to examination and the Chemical Examiner's report was that "the sample is in the form of a cream coloured pasty mass mainly composed of artificial resin (Poly-Vinyl-Chloride), Plasticizer (Phthalate type) inorganic filler and pigment. In trade and technology such composition is known as 'Plastisol'. In my opinion the sample may not be considered as PVC compound as commonly understood." Show cause notice dated 26-6-1985 read with corrigendum dated 16-12-1985 and 7-1-1986 was issued to the assessees proposing recovery of duty for clearances during the period from November 1981 to May 1985 and proposing imposition of penalty. The Additional Collector dropped the demand holding that, while according to the definition of Plastisol at page 823 of the Condensed Chemical Dictionary, 10th Edition revised by Gessner G. Hawley, a Plastisol is "a dispersion of finely divided resin in a plasticizer, a typical composition is 100 parts resin and 50 parts plasticizer forming a paste that...when heated to about 150C as a result of solvation of the resin particles by the plasticizer; if a volatile solvent is included, the plastisol is called an organosol (q.v.) Plastisols are used for molding thermoplastic resins, chiefly polyvinyl chloride," the product in dispute contains PVC resin, plasticizers, inorganic fillers and pigments and is, therefore, a PVC compound classifiable as such and exempt from duty in terms of the Notification claimed by the assessees.
Hence this appeal by the Revenue.
2. On hearing both sides and perusing the records, we find that in the appeal before us, the Department is seeking to rely upon the Chief Chemist's opinion to the effect that the product in dispute is not commonly understood as PVC compound, in view of the fact that, while in PVC compound, plasticizer is incorporated in the resion so as to solvate PVC, Plastisol is a simple mixture of PVC resin, plasticizer and filler and the product in dispute is not one where plasticizer is This opinion was obtained after the passing of the impugned order and is, therefore, not a document relied upon either in the show cause notice or in the proceedings before the original authority. Hence, the Department cannot rely upon such opinion. There is no other ground of challenge to the Additional Collector's order and hence no ground for interference with the impugned order as it stands has been made out.
Accordingly, we uphold the same and reject the appeal.