JUDGMENT

Y.K. Sabharwal, J.-The appellant is a manufacturer of industiral fabrics. It is claimed that the said fabrics have to be dipped in a solution of Resorcinol Formaldehyede Latex Solution (RFL solution) in order to achieve a good adhesion of rubber to such fabrics. The appellant manufactures Resorcinol Formaldehyde solution (RF solution) by mixing Resorcinol and Formaldehyde in the presence of Sodium Hydroxide and water and consumes the same in the manufacture of RFL solution, otherwise known as dipped solution . The appellant paid excise duty on RF solution which is stated to have been captively consumed in the manufacture of dipped solution used for the manufacture of dipped fabrics.

2. The claim of the appellant tht RF solutions are not goods under Section 3 of the Central Excise and Salt Act, 1944 (for short the Act ) and, therefore, not subject to any central excise duty was initially rejected by the concened Assistant Collector of Central Excise. The result was that pending the appeal proceedings the appellant paid the excise duty under protest. This controversy was, however, finally decided by the Tribunal by order dated September 25, 1990 whereby the Tribunal held t