Per Shri P.C. Jain, Member (T) :

Short question involved in this matter is whether conversion of duty paid "araldite" in cake-form under erstwhile Central Excise Tariff Item 15A (1) and purchased from outside into a solution by dissolving it in petroleum-based solvents make the latter again liable to duty under the same tariff entry 15A (1).

2. Original authority, namely Collector of Central Excise, Calcutta-II has held that the solution of "Araldite", in the above circumstances is not liable to duty again. It held that the process does not amount to manufacture of another commodity. "Araldite" resin in cake-form is converted to another form i.e. solution without bringing into existence another commodity known to the trade having a different name, character and use. The said authority, in coming to the aforesaid conclusion, has relied on several judgements of Courts and the Tribunal which are as follows:-