2000 (10) TMI 825 - AT - Central Excise

Summary

Issues: Classification of two products - nomex laminated with plastic and non woven fabrics laminated with plastic.

Classification of Nomex Laminated with Plastic:
The appeal focused on the classification of two products, nomex laminated with plastic and non-woven fabrics laminated with plastic. The appellant initially classified these goods under Heading 5903.99 of the tariff. However, the department proposed classifying them under Heading 5603.00. The appellant argued that the goods should be classified under Heading 8546.00 as electrical insulating material. The Collector (Appeals) upheld the classification under Heading 5603.00, citing a more specific description in comparison to Heading 8546.00.

Analysis:
The Tribunal rejected the reasoning behind classifying the goods under Heading 5603.00, emphasizing that Heading 8546.00 specifically covers electrical insulators made of any material, focusing on the function rather than the material composition. The Tribunal referred to the Explanatory Notes to the Harmonised System of Nomenclature and a Supreme Court case to support the classification under Heading 8546.00. Additionally, a previous Tribunal decision confirmed the classification of a similar product under Heading 85.46, further supporting the classification of nomex paper combined with polyester film as electrical insulator under Heading 85.46.

Classification of Non-Woven Fabrics Laminated with Plastic:
Regarding the non-woven fabrics laminated with plastic, referred to as fleece, the issue of whether its predominant use is electrical insulation was raised. The Assistant Collector and the Collector (Appeals) did not assess this question as they did not consider the initial applicability of Heading 85.46. The Tribunal remanded the matter back to the Commissioner (Appeals) to determine if the product is indeed used primarily for electrical insulation. The Tribunal highlighted that Heading 85.46 is more specific than Heading 56.03 and requested the appellant to provide evidence of the product's use as electrical insulation within a specified timeframe for further classification.

Conclusion:
The Tribunal allowed the appeal, setting aside the impugned order and directing a reevaluation of the classification of the non-woven fabrics laminated with plastic by the Commissioner (Appeals) based on evidence of its use as electrical insulation. The judgment clarified the specific classification criteria under Heading 85.46 for electrical insulating materials, emphasizing functional use over material composition.