Full Judgment
The appellants carry on business in the manufacture and sale, inter alia of paints and varnishes. They also manufacture certain intermediate products like synthetic or artificial resins which are solely used for captive consumption in the manufacture of paints and varnishes. The products in dispute in this appeal are Polymethyl Methacrylate Resins, namely - The appellants described the above mentioned goods as Polymethyl Methacrylate Resins following under Item 15A of the Schedule to the Central Excise Tariff and claimed the benefit of partial exemption from duty in terms of Notification 241/82, dated 1-11-1982.
3. The Asst. Collector held that "all the above goods were chemically tested and chemical test report indicates that the samples are Polymethyl Methacrylate copolymer synthetic resin and the product has been obtained from Methyl methacrylate monomer and other acrylic monomer (Butyl methacrylate) by copolymerisation and as such the product can be regarded as polymethyl methacrylate copolymer resins.
The Assessee also admitted the fact that the subject goods contains other acrylic monomers vide their written submission dated 20-6-1984 and also in course of personal hearing on 18-4-1985. The assessees contention to the effect that such small amount of other Acrylic monomers does not change the characteristics of the goods manufactured and as described in the classification lists. The partial exemption from payment of C.E. duty confined to polymethyl methacrylate as per Notification No. 241/82, dated 1-11-1982 and not for the methacrylate copolymer resin which are the products obtained from methyl methacrylate monomer and other acrylic monomer (butyl methacrylate) by copolymerisation. As such assessees arguments are not tenable.
The assessee further submitted a few extracts from some standard Text books in support of their contention that polymethyl methacrylate belongs to a class of polymers called acrylic Ester polymers. This class of polymer is known for good hardness resistance to ultra violet light. Sunlight and in-corporation of other chemicals/monomer do not alter the characteristics of the goods. There is no dispute regarding the contents of the standard Text books but the point of dispute in the instant case as whether product obtained by copolymerisation of other acrylic monomers can be accommodated in the description of goods covered by Notification No. 241/82, dated 1-11-1982 or not. The instant products are classifiable under Tariff Item No. 15A(1) as per Central Excise Tariff. Now as regards to the partial/concessional rate of C.E.Duty as per Notification No. 241/82, dated 1-11-1982 it can only be extended when the products are polymethyl methacrylate. In this case the products like (a) Acrylic copolymer solution for refinish (73-1101) (b) Adhesive promoting resin for refinish (73-1002) (c) Acrylic Resins (73-1103) (d) Acrylic copolymer solution for DSA white (73-1106) are obtained from methyl methacrylate monomer and other acrylic monomer by copolymerisation and, therefore, do not qualify for such partial/concessional rate of C.E. duty as the partial/concessional rate of C.E. duty is very much confined to only polymethyl methacrylate. He denied the benefit of Notification 241/82 on the ground that the products are obtained from methyl methacrylate monomer and other acrylic monomer by copolymerisation and that they are not polymethyl methacrylate to which alone the concessional rate under the Notification is confined.
4. The order of the Asst. Collector having been upheld by the Collector (Appeals), the appellants have come up in appeal before us.
5. We have heard Shri Nirmal Chakravarty, learned Consultant for the appellants and Shri V. Chandrasekharan, learned SDR for the respondents.
6. For the purpose of understanding the dispute, it would be relevant to see the wording of T.I. 15A (1) under which the products have been classified T.I. 15A(1) reads as follows: 15A. Artifical or Synthetic resins and plastic materials; and other materials and articles specified below - (1) Condensation, polycondensation and polyaddition products, Fifty per cent ad whether or not modified or polymerised, and whether or not valorem. linear (for example, pheno-plasts, amino-plasts, alkyds, polyal-lyl esters and other unsaturated polyesters, silicones); polymerisation and co-polymerisation products (for example, polyethylene, polytetrahaloethylenes, poly-isobutylene, polystyrene, polyvinyl chloride, polyvinyl acetate, polyvinyl chloroacetate and other polyvinyl derivatives, polyacrylic and polymethacrylic derivatives, coumaroneindene resins); regenerated cellulose, cellulose nitrate, cellulose acetate and other chemical derivatives of cellulose, plasticised or not (for example, collodions, celluloid); vulcanised fibre; hardened proteins (for example, hardened casein and hardened gelatin) natural resins modified by fusion (run gums); artificial resins obtained by esterification of natural resins or of resinic acids (ester gums); chemical derivatives of natural rubber (for example, chlorinated rubber, rubber hydrochloride, oxidised rubber, cyclised rubber); other high polymers, artificial resins and artificial plastic materials, including alginic acid, its salts and esters; linoxyn.
7. The Tariff description clearly states that it includes "Condensation, polcondensation and polyaddition products, whether or not modified or polymerised". This description is binding on all products covered under T.I. 15A, including those covered under Notification 241/82 which does not exclude modified type of polymers from the category of "polymethyl methacrylate". Nowhere does the notification exclude modified polymers from its purview and nowhere does it state the notification covers only homopolymers or unmodified polymers. The lower appellate authority relies upon the chemical test report for his conclusion that the products are Polymethyl Methacrylate Co-polymer Synthetic Resin obtained from Methyl Methacrylate Monomer and other monomers (Butyl Methacrylate) by co-polymerisation and as such they can be technically regarded as polymethyl methacrylate copolymer resin.
8. Serial No. 8 of Notification 241/82 mentions "Polymethyl methacrylate". The Notification does not stipulate that the concessional rate of 15% ad valorem duty is applicable only to Polymethyl Methacrylate in its pure form or only to polymethyl Methacrylate Homopolymer Resin (and not to copolymer resin). The concessional rate of duty cannot be denied to the appellant's products which are admittedly Polymethyl Methacrylate merely because they are copolymer resins, containing some other methacrylate monomers in addition.
9. As a result, we set aside the order of the Collector Appeals dated 20-1-1986 and allow the appeal with consequential relief.