G. Sankaran, Senior Vice-President

1. This appeal is directed against Order-in-Appeal No. 52/85(H) passed by the Collector of Central Excise (Appeals), Madras.

2. The facts of the case, briefly stated, are that the respondent is engaged in the manufacture of a product called "dough moulding compound" out of duty paid polyester resins and glass fibres. A sample was tested by the Chemical Examiner, Madras, with the following results :-

"The sample is in the form of pinkish colour fibrous hard lumps and powder. It is composed of synthetic resin (phenolic), inorganic fillers and cellulose fibres.

It is seen from the books on the subject that phenolic moulding compounds are used in making various types of decorative, mechanical, electrical and other parts and articles. Hence the sample under reference may not be considered as an article of plastic."

After issue of show cause notice and hearing the respondent, the Assistant Collector passed an order on 29-9-1984 classifying the goods under Item No. 68 of the First Schedule to the Central Excises and Salt Act (the Schedule is referred to hereinafter as the "CET" for short) and denying the benefit of Central Excise Notification No. 182/82