Page 192 - ELT_1st July 2020_Vol 373_Part 1

102 EXCISE LAW TIMES [ Vol. 373

product is not a chemical substance but while preparation seasoned for a
specific purpose for using underground telephone cables. Answers given
by the Chartered Engineer in question Nos. 4 & 5 are reproduced.
“4. From the ingredients used in producing the preparations made
in accordance with the specification given by department of Tele-
communication, can the preparation be countenanced as chemical
product and if so, what type of categorization can we give to this? Is
it a chemical product or alcoholic product? If it is not so what prod-
uct it is?
Ans. The resultant substance on integration of components is
NOT a chemical compound. It is simply a physically homogenous
compound sharing the physical characteristics of the constituents.
5. In case you find this product as a chemical products, kindly let
us know its similarity to any other product.
Ans. The question is superfluous since the product is not a
chemical product. Basically because no chemical product can be
produced with these ingredients no chemical reaction can take
place in the process of preparation. All the ingredients retain their
individual characteristics. This is therefore not a chemical sub-
stance”.
18. I find from the above answers that because the CFC is produced with-
out any chemical reaction it is certified as not a chemical product. This view
is not acceptable. Following are the extracts from the explanatory notes un-
der 38.23
“(B) CHEMICAL PRODUCTS AND CHEMICAL OR OTHER
PREPARATIONS
... subject to the above conditions, the preparations and chemical
products falling here include :
1. -------
2. -------
3. -------
4. -------
5. -------
6. Mixtures of Calcium Carbide, Calcium Carbonate (lime stone)
and other materials such as carbon or fluorspar prepared for
using as de-sulphuriser in steel making.
It can be seen that at 6 above, there is no chemical reaction but it is a
mixture and yet the item falls under 38.23. There are similar examples in
the explanatory notes such as mixed polyethylene glycodes, mixtures of
mono, tie and dry, fatty acids Easters of glycerol used as emulsifier for fats.
19. Thus the main objection against classification under heading 38.23 falls
apart. Therefore, I hold that CFC is classifiable under 38.23. In German Dyes
and Chemical case reported in 2004 (171) E.L.T. 480 (Tri. - Del.) cable filling
compound is stated to fall under chapter Heading 38.24.
Next question is about applicability of the Notification 287/86. This
notification exempts speciality oils falling under 2710.99 or 3403.00 from the
whole of the duty of the excise. Speciality oil has been defined in the expla-
nation as follows :

EXCISE LAW TIMES  1st July 2020  192